Global markets took a breather after a phenomenal rebound seen since the lows of March 2020. A combination of caution ahead of US Presidential elections and a sharp jump in Covid positive cases in Europe and US, led to frayed nerves in equity markets, with most witnessing healthy corrections. Indian equity markets though outperformed, with Nifty50 gaining 3.5% for the month. The broader markets just about managed to close in the green with minor gains for the month.
Markets are now looking forward to the festive season which combined with pent up demand is likely to lift capacity utilization. Q2FY21 results will be watched keenly for positive cues on the much-anticipated recovery for India Inc. There is no doubt that Q2 will witness sequentially higher growth numbers. In general, Q2FY21 earnings for companies who have reported so far have been meeting or higher than the suppressed expectations.