Post Market Views - Dec 15, 2020 - Mr. Binod Modi, Head Strategy at Reliance Securities

Domestic equities remained resilient and buy on dips was very much visible. A sharp rebound in select financial stocks led benchmark indices to recover from initial corrections. While most of sectoral indices traded in narrow range today, PSU Banks witnessed sharp reversal. Midcap and small caps stocks once again outperformed broader indices. Bajaj Finance, Bajaj Finserve, Eicher Motors and Shree Cement gained significantly, while Nestle, HUL and ICICI Bank were laggards.

Recent economic data with regards to IIP and CPI were encouraging and emboldened investors' confidence. Further, better prospects of earnings recovery remain intact. This along with weak dollar and fresh fiscal stimulus in the USA should continue to aid FPIs flow, which has been a key driving force for the domestic markets. We believe global events like Fed policy meet outcome, development on fiscal stimulus in the USA and progress on Brexit part would be key factors for domestic markets in coming days.

Source : Equity Bulls

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