Indian stock markets have outperformed most global market this week even though India is witnessing the highest number of new COVID cases worldwide. Nifty-50 is up 2.5 percent while the Nifty Mid Cap 100 Index and BSE Small Cap Index are up 3.2 percent and and 3.4 percent, respectively. Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, said metal stocks continued their dream run with the BSE Metals Index gaining 10 percent this week, 24 percent this month and 53 percent on calendar year to date basis. Other sectors which outperformed the benchmark Index are banking, oil and gas, consumer durables and realty.
Almost all global markets have shown flattish movement in this week. Indian markets could face headwinds on every rise because of the looming negatives and threat to earnings. Most of the earnings that are coming are in line with estimates which is already discounted by the market. One can stay cautious and look to have a buy on dips strategy for future investments.
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