ICICI Securities highlights Equity Market and Debt Market Outlook
Going into 2021, the resilient domestic set-up points towards a recovery in key macroeconomic data viz. GDP and infrastructure spending post a weak year. Corporate earnings, post the dip, are likely to see a handsome growth trajectory. However, after a “V-shaped” recovery and a flush of liquidity in the capital markets in CY20, the economic recovery path ahead is likely to be uneven. Furthermore, rising commodity price led inflation and new strain led risk of restrictions and lockdowns also persist.
ICICI Securities expect midcaps and small caps to gain relatively more than the large caps in 2021. The earnings growth during a recovery phase will be high in mid caps and small caps: Reuters