Equity market review: December 2020
Last updated: 04 Jan, 2021 | 11:00 am
India - Equity market commentary
The Indian equity benchmark index Nifty scaled fresh record highs in the month, as a lot of favourable domestic and global factors kept investor sentiment upbeat. Nifty gained around 6.26% in the month to 13,981.
All of the major sectors ended the month in the green, with NIFYT IT being the top performer.
Positive Market moving news during the month were
- The USA approving fiscal stimulus package.
- Brexit trade deal between with EU and the UK.
- Regulatory approvals for COVID vaccines.
- Macro data points indicating quicker than estimated economic recovery.
Negative Market moving news during the month were
- New COVID strain found in the UK.
- Renewed lockdowns in several parts of the globe.
Broad Market - Top Movers
The charts below shows top movers across market caps for the month of December 2020 :
Sectoral - Best and Worst Performer
The table below shows sector-wise best and worst performers for the month of December 2020.
- FIIs have more than 20% ownership in Indian stocks, the single biggest entity after promoters. Its is well known and observed that FII flows are a major factor behind the direction of the Indian equity markets.
- Foreign Institutional Investors (FIIs) continued to pump money in the Indian equity market with the December tally at ₹62,016 crore beating the all-time high recorded in the previous month.
- These inflows are because of the influx of global liquidity, near-zero interest rates in the US and faster than expected economic recovery.
- Book profit in case of significant gains and avoid lump-sum investments in the stock market. Read our analysis on market valuation here.
- Stagger your lump sum equity investments into smaller fractions before deploying into this market
- Continue your SIP investments
- Stop large lump sum investments into NIFTY ETFs.