Post Market Views - Dec 10, 2021 - Reliance Securities

Mr Mitul Shah, Head Of Research at Reliance Securities

The domestic market recovered from day's low and trading more or less flat amid volatility. The broader market outperformed the main indices, NSE Mid-Cap up 0.7% while Nifty Small cap gained ~1%. Sectors like Media, PSU Banks and Realty were up ~2%. The market witnessed profit booking in the first half of the session but firmed up in the afternoon amid positive global cues. Easing worries over the omicron variant of coronavirus also supported buying.

The central bank kept its stance, policy rate and corridor unchanged and not provided any forward guidance on the path of future policy rate increases. The government's focus is clearly on supporting growth through sufficient liquidity and low interest rates despite street fears over rising inflation, changes in interest rate policy by global economies and high commodity prices. However, India is at the beginning of capex revival phase and therefore corporate earnings recovery looks sustainable and premium valuations might sustain, barring near term hiccups.

Source : Equity Bulls

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