Street signs for 2021

One of the paradoxes of 2020 has been the global divergence between economic fundamentals and stock market returns. Growth in every major global economy has taken a hit due to the pandemic. But every major stock market has yielded positive returns. Since stock markets are forward-focused mechanisms, this implies expectations of a strong rebound in growth. Are markets likely to continue running up through 2021? Expectations do seem inclined in that direction. India has been among the worst performers of 2020 in terms of economic growth. Yet, the Nifty has risen 14.6 per cent since January and i.....

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