INSUBCONTINENT EXCLUSIVE:
After shedding weight for the seventh consecutive week, domestic equity indices will continue to be swayed by developments in the battle
Direction of FII flows will also be a key factor in coming week, which has two trading holidays on account of Mahavir Jayanti on Monday and
Good Friday.
The government is yet to announce anything substantial for Indian businesses, especially those that have been hurt badly by the
these factors may guide market in the coming week:
Coronavirus spreadIndia reported a rapid increase in the number of confirmed coronavirus
cases in the last couple of days showing early signs of community transmission
There are fearing of a sharp increase in new cases going forward
The number of reported cases has surpassed the 3,000 mark, with Maharashtra leading the tally
The number of deaths has crossed 70
The government says there would be staggered easing of the lockdown from April 15
But if the virus is not contained, it will be difficult for the authorities to fulfill that promise
The first sign of a possible lockdown extension came after Air India stopped booking till April 30.
FII outflow continuesForeign
institutional investors (FII) have continued to dump Indian stocks even this month
They have taken out a net of Rs 6,750 crore, including Rs 3,802 crore from equities so far this month
rate cut, the rupee has again slipped, weighed down by continued outflows from domestic equities and renewed strength in the dollar index
Analysts fear a further slide in the currency even as the central bank has shortened trade timing in the forex market to curb volatility
VP-Metals, Energy - Currency Research, Religare Broking.
Three-day weekThe upcoming week will be shortened one as there are two holidays and
On Monday, April 6, the markets will be shut for Mahavir Jayanti while on April 10 for Good Friday.
Lockdown to hit growthThe lockdown in
India has entered the third week
Businesses across India have suffered heavily due to the prohibitory orders
Barclays estimated the cost of the lockdown at $120 billion (approximately Rs 9 lakh crore), or 4 per cent of the GDP
Analysts have projected an imminent recession if the lockdown continues
6The group of oil producers are likely to hold a meeting on April 6 via video conference, which will be keenly watched by investors
Oil prices staged a record jump on Friday in anticipation that the grouping will agree on a possible production cut at this meeting
Investors will be watching the quantum of cut in production and if that will be enough to shore up the prices given a huge drop in demand
due to enforced lockdown in many countries.
Technical outlookAfter opening lower last week, NSE flagship Nifty traded in a comparatively
narrow range between 8,130 and 8,680 levels and continued to consolidate
The recent sell-off caused significant price damage in a very short time and, hence, the market is likely to oscillate in a broad range of
He advised traders to go long if Nifty sustains above 8,000 level, keeping that level as stop loss for long positions.
