India Stock Market Strategy - Omicron Drives A Pullback: Motilal Oswal

India Stock Market Strategy - Omicron Drives A Pullback: Motilal Oswal

Stock market movements on an electronic display. (Photographer: Michael Nagle/Bloomberg)

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Motilal Oswal Report

The Nifty ended its six-month winning streak in November 2021, ending ~4%, or 688 points, lower at 16,983. Nov-21 was characterised by elevated volatility, with the benchmark oscillating in a wide range (~1,400 points) and pulling back ~8% from record highs of October 2021.

Much of the market anxiety can be attributed to global factors (Fed’s taper announcement, rising bond yields, higher crude oil prices, and strengthening of the U.S. dollar index).

A big fundraise in the primary market also put some pressure on the secondary market. Sentiments were battered across global equity markets on Nov 26, 2021 with the detection of a new Covid-19 variant – Omicron – in South Africa.

Nov-21 saw the highest inflows by domestic institutional investors since March 2020 at $3.6 billion. Foreign institutional investors saw outflows for the second consecutive month at $0.8 billion.

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Motilal Oswal Bulls & Bears - India Valuations Handbook.pdf
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