Suppose instead of investing in the stock market, you put 3,00,000/- in a bank FD which pays you 7.25% interest paid every quarter (i.e. 5437.5/-). After this you go long on 90 day nifty futures. What you will observe is that typically they are available at a premium of 60-70 points above the prevailing spot rate. So net of brokerage 2300-1800/- every quarter. (more if you face an contangio or bearish market). Over the year this would translate into an additional gain of about 7-10k for every 3 Lakhs invested.
All you have to do is buy the nifty futures that expire after 90 days and hold it till the maturity date. On the maturity date you roll over the contract. I.e. pay 60-70 points premium and buy a new contract that matures after another 90 days. If the market goes down, the nifty contract will also lose the same amount hence making it a perfect hedge. Another advantage is the ability to leverage. Irrespective of the margin requirement, I believe that leverage higher than 5:1 in Indian market is risky. Hence by a minimal investment of 60,000/- you can have a market exposure of 300,0000/-
Note: consult your financial adviser before following the strategy blindly.