It’s Ease Of Moving Here & There

The Indian equity market reflected a solid uptrend since the second wave of the Covid-19 pandemic started ebbing. It darted up to fresh all-time highs, with Nifty50 finally crossing the 16,000 mark as economic recovery hopes triggered across-the-border buying. The sanguine environment has been fuelled by ample liquidity flowing within the system. Growth concerns continued to be a priority for the central bank. The Reserve Bank of India maintained a low interest-rate regime with an accommodative stance. Lower cost of funds for the corporates coupled with sustained economic recovery is expected to help the markets re-rate themselves leading to valuation multiple expansion. While the markets are riding higher, the risk of investing at expensive valuations is also imminent. As the pace of vaccination picks up, the markets may rally further on the back of economic revival and strong earnings...