Post Market views - Dec 22, 2020 - Mr. Binod Modi, Head Strategy at Reliance Securities

Domestic equities recovered sharply from day's low in a volatile trading day mainly aided by strong buying in IT stocks. Investors once again started focusing on safe counters which are considered to be resilient from pandemic. IT, Pharma, telecom, FMCG and chemicals were in focus today. HCL Tech, Tech M, Infosys and Sun Pharma were among top gainers, while Kotak Bank, Tata Motors and Hindalco were laggards.

While concerns of new strain of Covid-19 do not augur well for the markets globally, India still looks to be better placed compared to others. However, markets are likely to remain volatile in coming days until clarity emerges about new Covid-19 strains and efficacy of ongoing vaccinations. Investors must focus on quality names with decent margins of safety as broad-based rally in the markets looks difficult hereon considering rich valuations and threat on earnings from rising input costs and possible disruption in demand due to fresh restrictions in various countries.

Source : Equity Bulls

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