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Below is quote on Morning market 03 January 2021 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The biggest support to the global market rally is coming from the mother market US which is on a secular rally. S&P 500 has rallied spectacularly from the low of 666 in 2009 to 4766 now. In 2021 S&P 500 appreciated 26.9%, a tad above Nifty's 24.12%. So, the trend is US has to be carefully watched.

 A trigger that can break this uptrend is a sharp rise in inflation and the Fed and other central banks hiking interest rates above market's current expectations. If inflation comes under control, markets may continue the rally.
Even though Omicron is spreading fast, the market doesn't expect any restriction on economic activity that will impact growth and earnings.

IT's outperformance (60%in 2021 and 55% in 2020) is likely to continue in 2022 too. Private Bank's underperformance ( 4.58% in 2021) is likely to be reversed in 2022 with improving credit demand, declining NPAs and rising margins.

Investors should prepare for modest returns in 2022 with outperformance expected from financials, IT, telecom and construction related segments"

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