A story of revival amid Covid-19: People stayed home but bulls ran wild

Valuations are expensive, but further rally is possible if the Covid situation eases

It was a year characterised by wild swings. While slowing economic growth was a worry, the onset of the Covid-19 pandemic caused a crack that led India's leading indices to lose more than a third of their value in less than five weeks. The indices staged a sharp recovery after May, and are set to end 2020 with gains of more than 80 per cent over March 23 lows, largely driven by easy liquidity sloshing across the globe and the resulting deluge of overseas inflows.

Foreign portfolio investors (FPIs) offloaded stocks worth over Rs 62,000 crore in March and April. Since