However, the domestic and global economic recovery, which forms the bedrock of a sustainable market growth, is still a work in progress amid concerns on various accounts. There are several factors or risks that the market is likely to grapple with this year. While FPIs (foreign portfolio investors) can afford to take risks, many feel they are sensitive to interest rates outside. Nilesh Shah, MD, Kotak Mahindra AMC said premature withdrawal of stimulus can create a significant problem for the economic recovery across countries, and hence it will be very important to see when they start doing so. That would result in demand generation and revenue growth for companies (which has been missing over the last couple of quarters), and would be a reflection of economic growth and recovery.

Source: Indian Express December 31, 2020 21:54 UTC