Markets This Week Will Track Covid-19 Updates For Further Cues, Analysts Say
Indian stock markets may see high volatility this week as sentiment will continue to be driven by how the coronavirus situation is evolving worldwide and domestically, said analysts.
The S&P BSE Sensex had last week lost 2,224.64 points. The S&P BSE Sensex and NSE Nifty 50 will be closed on Monday for 'Mahavir Jayanti' and on Friday for 'Good Friday'. On the macroeconomic front, PMI data for the services sector is due on Monday.
Market participants would also track movement in crude oil prices, rupee-dollar trend and investment pattern of overseas investors, analysts said.
"Going ahead, the market would continue to be highly volatile and would track global markets along with the trend in coronavirus cases globally and locally,” Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services Ltd. said. “However, it has corrected significantly, providing significant investment opportunity for long-term investors.”
The number of Covid-19 cases has crossed the 3,000 mark with death toll at 77. The pandemic has infected over 1.2 million people across the world and killed more than 50,000. Fitch Ratings had on Friday warned that India's GDP growth rate in 2020-21 may stand at 2 percent—the slowest since the economy was liberalised 30 years back.
"The market trend will be driven by any signs of the virus infections peaking out in the worst affected countries,” Vinod Nair, head of research at brokerage Geojit Financial Services, said. “India's efforts to keep the infection under control have seen some success and some hurdles, any news with regards to the lockdown being withdrawn, may be met with some positivity,"
"We believe the market trend will continue to remain challenging until the number of fresh cases start to decline,” Ajit Mishra, vice president (research) at Religare Broking Ltd., said. “Though the defensive pack is playing saviour, the damage in other sectors is more severe and that would keep the markets under pressure ahead also.”