Curbs in Maharashtra put in place in the backdrop of rising Covid-19 cases followed by the night curfew imposed in Delhi has made analysts a worried lot, with brokerages now favouring defensive stocks over cyclical plays. With Covid-19 cases rising in the country, they feel more restrictions could follow across major cities. Though a national-level lockdown is ruled out for now, the state-level situation will be different. As such, Maharashtra and Delhi’s measures may be followed in other states in case coronavirus cases spike. As a result, the potential spread of local lockdowns would likely delay the expected recovery.
Be prepared for a volatile phase as risks to markets on a rise: Analysts
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Weekly Dossier | Pramod Gubbi, Nischal Maheshwari, Nilesh Shah & others on market trends
The S&P BSE Sensex fell 0.3 percent, while the Nifty50 was down by 0.4 percent in the week gone by but a bigger cut was seen in the small and midcaps.
Representative image | Source: Pixabay
The S&P BSE Sensex climbed mount 50k and the Nifty50 breached 14,750 in the week gone by but profit-taking towards the end pushed the indices in the red.
The S&P BSE Sensex fell 0.3 percent and the Nifty50 0.4 percent but it were the small and midcap that took a hard knock. The BSE midcap index fell 0.7 percent and the smallcap index was down 1.3 percent for the week ended January 22.
Nifty tops 14,000, 5 key factors that kept market happy and high in a gloomy 2020
The road ahead will depend on how the economy fares in days to come and how quickly the vaccine becomes available to the masses. December 31, 2020 / 11:57 AM IST
The year 2020 is going out with a bang, at least for the Indian equity markets, with the benchmark Nifty hitting the never-seen-before 14,000-mark in the morning trade on December 31.
The Nifty s journey this year, like all things in 2020, has been volatile it has jumped over 86 percent from the level of 7,511 it sunk to in March 2020.
The bull run is likely to continue in 2021 and both the Sensex and the Nifty look poised to scale new peaks.
What do you make of the rally so far?
The FPIs have been very active at least in the last quarter and a large part of the rally has been caused by the consistent FPI flows. We need to understand why the FPIs have been so excited about India especially in the last quarter. There are three primary reasons. One, the MSCI rebalance and the flow that followed. Part of the flow which we have seen till now is done and over with.
Two, the weaker dollar index. I do not think that is going to change dramatically going forward because we expect the dollar to continue to remain weak versus global currencies. As a result, we will continue to see some amount of inflows.
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