Financials helped Nifty touch 17,000: Khemka | Economic Times

In the last 18-24 months, the midcaps were outperforming now. In the last one, one and a month, interest in largecaps have helped the index move past 17,000, says Siddhartha Khemka, Head of Retail Research, MOFSL. What a rally we have seen as the Nifty surged from 16,000 to 17,000. What is on your radar as we try and move to 18,000?Yes, it has been a historical day for Indian markets. Nobody would have expected Nifty to touch 17,000 so fast when we touched 16,000 sometime back. Given that we are staring at the third wave of pandemic. Developed countries including US, Europe, UK are struggling with rising Covid cases. In India also, recent numbers have been rising but yes, the overall macro numbers have been quite supportive of the recovery in the macro economic growth. That is the case with global markets as well. With the US economy being on a strong footing, the US Fed said they would be looking at a calibrated taper. That kind of calmed the global nerves and liquidity flows continued afresh, entering largecaps again. In the last 18-24 months, the midcaps were outperforming now. In the last one, one and a month, interest in largecaps have helped the index move past 17,000. We had seen Nifty consolidating at below 16,000 for almost two and a half months but once it crossed there, we saw a lot of largecaps participating. In the last few days, banking stocks which contribute almost 40% of the index and were underperforming for a long time, have started participating again, So financials, especially banks have been a key pillar to the index touching 17,000 levels.