Need to be cautious at these levels

Binod Modi, Head Strategy at Reliance Securities
Domestic equities witnessed sharp recovery led by sharp rebound in BFSIs and metals. All sectoral indices ended in green.

JSW Steel, Tata Steel, Grasim and Bajaj Finance witnessed sharp recovery, while Eicher Motors, BPCL and Maruti were laggards.
BFSIs continued to remain as a key driving force for the market. Improved prospects of earnings recovery in the backdrop of improvement in collection efficiencies, better outlook for credit costs and possibility of reversal of provisions due to resolution of select large accounts along with better valuations attracted investors in BFSIs. In our view, investors need to be cautious at these levels as current valuations of market look to be stretched. (Share Manthan, November 27th, 2020)