InvestorQ : How did the Nifty and the other key indices perform in the month of November 2020?
Mitali Bhutta made post

How did the Nifty and the other key indices perform in the month of November 2020?

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10 months ago
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Here is what you need to know about the performance of the Indian markets in the month of November 2020.

· In retrospect, the Nifty and Sensex gained nearly 11.4% in the month of November, which is the best monthly return this year after the 14% returns in April 2020. This performance was underpinned by the highest-ever foreign inflow.

· The rally was triggered by the election of Joe Biden to the US presidency as well as the progress on the vaccine front. These two events substantially boosted the risk appetite of foreign portfolio investors. Daily average flows were to the tune of Rs.3000 crore.

· The rally was also substantially broad based. The small can and the mid cap indices also gained over 13% in the month of November. This was supported by an all-round interest in specific stories with improving levels of Advance / Decline ratio.

· The rally in November 2020 was significant for two reasons. Firstly, it came on the top of a massive 50% rally since March this year. Secondly, the Sensex and the Nifty surpassed their respective records. Nifty crossed the 13,000 mark during the month.

· It needs no reiteration that the markets have done extremely well from the lows of the year and valuations are no longer cheap. The bounce in the Nifty was also supported by a sharp recovery in the high frequency macro indicators as well as boost to profits in Q2.

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