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Below are Views On The markets have rallied by close to 80%, both NIFTY and SENSEX By Dr. Joseph Thomas, Head of Research, Emkay Wealth Management

The markets have rallied by close to 80%, both NIFTY and SENSEX, in FY21, the best financial performance in a decade. The key thing to note is the sharp drawdown witnessed towards the close of the preceding financial year. FY20 saw negative returns to the tune of 30%. This is  quite similar to the base that was created in FY09 when markets corrected by 40% due to the global financial crisis. But that was swiftly followed by close to 80% returns for FY10. The fall in markets due to severe economic distress proved to be the best investment opportunities. The star performers among individual sectors were IT, Pharma and Banking. As we enter the new financial year there is a ray of hope that the economic performance will continue with support from fiscal and monetary policies, and the second wave of the pandemic may be well under control as the  vaccine rollout is underway across the globe.

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