Markets heading for a third straight year of narrow stock participation

Weak underlying economic trends may keep market interest limited to select stocks

Much has been said about how the CNX Nifty at over 11,850 points defies logic, given the underlying economic trend remains uninspiring and that corporate earnings, despite relief from tax rate cuts, were a damp squib in the July-September quarter.

With little optimism in sight at least in the near-term, market experts feel the Indian equities are headed for a third straight year of narrow stock participation.

They expect 2020 to hit a hat-trick, in terms of the same stocks contributing to the broader markets’ rally.
“Risk-reward at current levels is less attractive and hence, the construct of