Watch out for these 4 big risks that market faces in 2021 The expected recovery in earnings and the economy in 2021 seems to have been priced in by the market. If there is any disappointment, then the market can nosedive, say experts . January 08, 2021 / 02:02 PM IST In the year 2020, the coronavirus outbreak and subsequent lockdown upended lives and wrecked economies in the early months. In the later part of the year, as restrictions eased, the Indian economy showed signs of recovery, so did the market. Improved economy and earnings, ample liquidity, central banks' decision to keep interest rates low, vaccine rollout and measures taken by the Reserve Bank of India and the government saw the market rally 15 percent in 2020 to hit record highs.