As per the views of Yes Securities Senior President and Head of Research- while 2020 was largely the year of survival both health-wise and financially, the year also offered an opportune time to rejig one's portfolio. And the current uptrend shall likely continue going forward in the year 2021 in anticipation of, an ensuing economic recovery.
Further he is of the view that in all likelihood markets would replicate the trend witnessed in the year 2003.
Stock Market Outlook for 2021
On the outlook for 2021, the structure of the market seems promising after consolidation has been witnessed since the year 2018. This is also as the volatility levels have receded lower. Also, as per the brokerage firm, the valuations are not in the dangerous as is widely thought to be. And as and when the earnings shall pick up in 2 out of the next 4 years, others who are highly negative will also declare valuations to be reasonable.
Nonetheless, the negatives such as ballooning fiscal deficit, concerns around unemployment as well as sustenance of small scale businesses cannot be overlooked. Also, there are positives which are lending support to the markets such as a benign commodity and crude landscape will fuel equities, manufacturing push in India, lowered taxation and government's investments pegged at US$20 billion to lure global players to commence manufacturing in India.