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Perspective on Today's Market Movement by Mr. Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

“The Nifty Midcap 100 index yesterday crossed the 25,000-mark for the first time and continues to hit all time high as the  sentiments improve. Over last 1 year, Nifty Midcaps have clearly outperformed, giving returns of ~94% vis-à-vis 65% return in Nifty. As domestic covid cases fell below the 3 lakh mark for the second day in a row since mid-April, helped by the extended lockdowns by majority states, sentiments have turned buoyant. Hopes have accelerated that soon restrictions/curbs would be eased once cases decline further. Even the news flows around vaccination front is boosting confidence as more Pharma companies are tying up for vaccine manufacturing. Visibility on economic recovery front improves as industrial activities largely continued even during the lockdown and now with restrictions likely to ease, consumer demand is expected to make a come-back. Thus investors are heading more for mid-cap stocks as growing risk appetite and cheaper valuations of these companies compared to large-cap peers have revived their popularity.”

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