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Delhi or Mumbai? Is more work available in Bombay as compared to Delhi? How is the magistrate/sessions court practice in Delhi compared to Bombay? Is the bar at Bombay HC more encouraging for the new commers?

I'm from a tier 2 city, will have to move either way. No placement prospects in my law college but I know some people in both the cities, they've promised help.
The advice I've gotten from quite a few practitioners and Senior Advocates is that you have a natural advantage in your home city/state. I guess it's the logic of being the 'big fish' in a small pond. Knowing the vernacular gives you an advantage as well. Delhi and Mumbai are cities with a huge supply of excellent advocates, not to forget their familial backgrounds as well. Making a mark, therefore, becomes all the more difficult. Tier 2 can still offer tremendous opportunities as long as you master your fundamentals and build a strong network.

That being said, I would say Delhi would be preferable over Mumbai for two reasons: Firstly, the number of forums where you can practice, and secondly, the lower cost of living. Mumbai is horrendous if you aren't making enough money to manage rent. Delhi is still bearable in this regard.
Go to your home state. Either to your hometown or to the concerned High Court. Far more opportunity lies there rather than in Mumbai or Delhi.