Market Outlook – May 2021

For the month of April, domestic equity markets rose on the back of brisk buying in the banking and finance segments. Upbeat earning numbers for the quarter ended Mar 2021 boosted the market sentiments, after a major private sector bank reported strong earning numbers. Positive global cues further added to the gains, after the U.S. Federal Reserve kept interest rates unchanged in its monetary policy review and re-affirmed its accommodative policy to support the economic recovery.

However, profit booking capped the gains to some extent. The overall market sentiment also remained muted as a devastating second wave of the COVID-19 pandemic showed no signs of abating with the country continuously reporting a record surge in daily infections.

Markets to remain sideways this month with Nifty range of 14200 – 15200. State elections are done and dusted, hence Govts full focus will now be on COVID control. Vaccinations above 18 age have started and if States are able to conduct this drive successfully, the market is going to touch new highs in coming months. 

Recommended to start accumulating stocks. Pharma, IT, Cement & Chemicals, as being quick runner segments. We suggested building equity allocation on a partial basis monthly, to accumulate or shift debt assets towards equity. Speak to your advisors for a guided experience.

Photo Credits:

Mushtaq Kazi
Mushtaq is the co-founder of Mushtaq has had corporate stints with Kotak Securities & IIFL group. He holds an MBA degree from Pune University.
His interests include cooking & gardening. When he is not cooking or gardening, he is writing.