Indian stock markets are exhibiting a more broad-based bullish vibe after India-related MSCI indices rebalancing also fuelled a frenzied buying in mid- and small-cap stocks.
Things to look forward to..
The better-than-expected GDP number released Friday is also expected to support markets.
The upcoming auto sales numbers are also not expected to ruffle the momentum.
A major factor worthy of note is that, things are not that bad for most sectors as was initially feared. The second-quarter earnings numbers were by and large ahead of the Street’s estimates, thanks to good all-round savings, and better revenue growth.
Last week’s sharp gains of 3.9% and 6.3% in the Nifty Mid- and Small-cap indices are showing the smaller companies are able to make a good comeback after the lockdown.
In fact, the Nifty Mid-cap and Small-cap 100 indices gained 14% and 13% in 2020, outperforming the Nifty 50’s gains 8% by a mile.
Bottom line: Cash inflow continues.. warning sign ahead?