The Indian equity benchmarks settled in the positive territory for the third consecutive month in December as the Sensex and Nifty rose about a percent in the last month of 2020.
Sustained FPI inflows, stimulus talks, signs of economic recovery and positive developments on the front of the COVID-19 vaccine continued to support the market.
Data from Ace Equity shows as many as 28 stocks from the BSE 500 index rose more than 25 percent in December while 20 stocks jumped more than 30 percent.
Shares of Suzlon Energy ended as the top gainer in the BSE 500 pack, surging as much as 90 percent, followed by Vakrangee that jumped 80 percent in December.
From the mid-cap space, over 25 stocks, including SAIL, Adani Power, Oberoi Realty jumped more than 10 percent. Some 9 mid-cap stocks rose more than 20 percent, as per data available with Ace Equity.
From small-caps, shares of Borosil Renewables, Jaiprakash Associates and Olectra Greentech jumped 139 percent, 103 percent and 100 percent, respectively, in December. Some 21 small-cap stocks rose over 50 percent in December.
The Indian market ended the year 2020 in the positive territory with market benchmarks - Sensex and Nifty - scaling record highs.
The year 2021 is also expected to be a positive one for the market as it is showing resilience on the back of abundant liquidity, positive developments on the vaccine front and signs of economic recovery.
As per B Gopkumar, MD & CEO at Axis Securities, 2021 will be a year of growth.
"We expect the GDP growth rate in 2021 to be closer to double digits and earnings growth to be over 30 percent for India Inc. Union Budget in 2021 could also be a blockbuster. Putting these perspectives together, we are likely to see a robust 2021," he said.
However, considering the sharp run-up seen in the markets, some healthy consolidation cannot be ruled out in the market, given that the valuations remain stretched across the board.
The updates on the COVID-19 pandemic, vaccine progress and stimulus package announcement would be key monitorable for the investors going into 2021.
Ajit Mishra, VP Research, Religare Broking believes the overwhelming liquidity support from central banks is likely to continue in 2021 as well, which would be positive for markets.
"We believe the trend of mirroring global cues could continue in 2021 as well. However, the outperformance or underperformance would be dictated by India’s fiscal position, NPA situation and earnings," Mishra said.
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