Nifty & Sensex corrected 9% each, due to Omicron fears worldwide, but recovered 3% each as news of new virus being milder and not lethal emerged. Nifty PE is trading at 23.7 as compared to 28.17, as the profit booking helped high valuations cool-off.
RBI Policy was announced today, and the status quo was maintained. The MPC also maintained “accommodative” stance. CPI inflation is projected at 5.3% in 2021-22. This consists of 5.1% in Q3, and 5.7% in Q4 with risk broadly balanced. RBI Governor said central bank would continue to manage liquidity in a manner to maintain financial stability.
Important events that will affect markets in December:
- Fed Policy meet on 16th December. Decision on increasing tapering speed and earlier raising of Interest rates in 2022 will be discussed.
- Omicron spread and its impact in coming days will be keenly watched.
- 25000 Crore worth IPOs lined up in December.
- Bill to regulate crypto currency will be presented in parliament.
FIIs now have been net sellers in last 8 consecutive months, while DIIs are the net buyers, and retail participation has again been the saviour, helping the markets to rebound from lows.
IPO market will be hot again in December, with big names like Emcure Pharma, Delhivery, Aadhar Housing, Adani Wilmar, Go Airlines and 27 other companies lining up their new issues worth 25000 Crore.