After a stupendous rally in market, returns may moderate in 2021: Experts

Experts say markets have already priced in a lot of positives

After a stupendous rally in the market from March lows, experts say returns may moderate in the new year. The market's trajectory in the calendar year 2021 (CY21), they believe, will be guided more by developments surrounding Covid-19 and its vaccine, oil prices, global central bank policies, and the US dollar's movement at the global level.

Back home, corporate earnings and the government's policies to revive economic growth (within and outside the scope of the Budget) amid rising inflation will be keenly watched.

The expectations of moderate returns are linked to the fact that the markets are currently pricing in