On Wednesday, Sensex crossed the 46,000-level for the first time ever and NSE’s Nifty 50 hit the 13,500 mark. The two indices have hit record highs in 14 of the last 21 sessions.
Indian markets have rallied over 50% when compared to the performance at the end of March. Strong global cues, steady liquidity from inflows into the equity markets and positive COVID-19 vaccine news have helped the Indian stock market benchmark indices rally beyond crucial resistance levels.
A top government health adviser said in a TV interview on Sunday that Pfizer has applied for emergency use authorisation of its coronavirus vaccine in India, the first vaccine developer to do so in a country with the world’s second-highest number of infections.
Following suit, the Serum Institute of India (SII) and Hyderabad-based Bharat Biotech also applied to the Drugs Controller General of India (DCGI) for emergency use authorisation of its COVID-19 vaccine, Covaxin, a PTI report said.
Britain started a mass vaccination campaign this week after approving Pfizer’s vaccine, adding to the market’s optimism.
Investors were also encouraged by reports that the US lawmakers are making progress toward fresh stimulus for the American economy.
2021 Market Expectations
As markets continue to hit new record highs, Axis Securities expects IT, pharma and FMCG sectors to do well next year.
“The market is hitting all-time highs on positive global developments on vaccination, liquidity and improving the economy. Sector rotation has been playing out well. Value plays have done well in recent times. Banking has also done well and the sustenance of BFSI rally will take the market to higher levels,” said Naveen Kulkarni, Chief Investment Officer at Axis Securities.
“While interest rate sensitives and cyclical plays have done well, but defensive plays like IT, Pharma and FMCG will be back in flavour in the new year as earnings visibility will be key,” he said.
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