January 01, 2021 / 10:23 AM IST
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services:
As we enter 2021, the market is sitting at all-time high and is showing resilience on the back of abundant liquidity, positive developments on the vaccine front and signs of economic recovery. More importantly, COVID-19 cases have seen a meaningful decline. Improved corporate earnings have also buoyed the market sentiments. We expect Nifty earnings to remain flattish in FY21 while expecting a sharp rebound in FY22. Thus, the overall structure of the market remains positive.
With the economic activity continuing its recovery, it could lead to start of earnings upgrade cycle. Further liquidity flows across Emerging Markets could remain strong which bodes well for Indian markets. However, intermittent corrections cannot be ruled out as there is a risk of second wave of Covid-19 and thus sustenance of economic recovery holds the key. From next 12 months perspective, we are positive on IT, BFSI, Healthcare, Telecom, Auto and Consumer.