INSUBCONTINENT EXCLUSIVE:
After logging gains for two consecutive weeks on global cues and government stimulus hopes, the domestic equity market is going to have a
reality check in the coming week as the earnings season is going to gather pace
This, along with developments on the coronavirus front, will be among the key factors guiding investors in the week ahead.
Coronavirus cases
continued to mount across the world, including India, raising worries
from the quarter earnings and the market seems to have already price in that disappointment
Nair, Head of Research at Geojit Financial Services.
Going by the buzz on Dalal Street, here are the key factors that will be steering the
market in the days ahead:
Q4 earnings: Infy, ACCMarch quarter earnings season is picking up speed
After TCS and Wipro announced their numbers last week, Infosys and Tata Elxsi will come out with their numbers on April 20; ACC, CRISIL, Den
Networks, ICICI Prudential Life Insurance and Tejas Networks will follow suit on April 21
disappointed as the central bank did not announce fresh open market operations to buy dated securities that could have led to a fall in bond
yields and increased liquidity in the market
However, RBI did announce TLTRO 2.0 (targeted long-term repo operation), aiming to inject Rs 50,000 crore in the market, targeted mainly at
NBFCs and microfinance institutions.
Output cut impact on crude priceDespite an agreement among the oil producing nations globally to cut
crude oil production from May, the prices have slumped amid falling demand
As many countries and regions are under a lockdown, transportation has come to a standstill, hitting demand and leading to a supply glut
Brent oil futures fell over 10 per cent to Rs 28.08 last week.
Rupee at record lowsConcerns over coronavirus and the consequent economic
distress are weighing on the rupee, which along with outflows from local equities may push the rupee to sub-77 levels soon
unit further to a new record low of 76.86 mark
Market participants are looking forward to a second round of stimulus from the federal government, and that could trigger some gains
Research, Religare Broking.
FII outflow dropsForeign institutional investors (FII) outflows have come down and the total exits last week
stood at just Rs 857 crore and April outflow so far at Rs 3,808 crore
Overseas portfolio managers were earlier selling in hordes as they faced redemption pressures from clients
In 2020 till now, they have pulled out Rs 1,20,408 crore from Indian markets as per NSDL data.
Coronavirus count risingDespite harsh
measures to contain coronavirus, the number of cases in India has neared 15,000 and total deaths topped 500
Globally, confirmed Covid cases have crossed the 22.5 lakh market with nearly 1.6 lakh people dead
However, many countries and regions have reported plateauing of cases and plans to open their economies gradually.
Factories, construction
decided to relax lockdown in the less-affected areas
Construction work, which employs a large number of labourers, will resume
If India is successful in reopening the economic engines without any health hazards, it would give hope for others as well.
Economic
stimulus awaitedDalal Street is speculating on an economic stimulus package for businesses which, if announced during the next week, may
soothe the nerves of investors
Finance Minister Nirmala Sitharaman on Friday reiterated India would soon announce fresh relief measures and economic stimulus
However, she did not provide any timeline for the same.
Covid drug found?With reports claiming possible breakthrough in drug development for
More drug trials are on across the world, and any further development on that front can help lift the morale of market participants in the
days ahead.
Technical outlook weakNifty50 formed a Hammer pattern on the weekly chart, indicating subtle weakness
Such Hammer patterns are bullish when made near bottoms and bearish when made after rallies
Any weakness below 9,000 level will trigger another round of selloff
Going ahead, the market is likely to consolidate and face selling pressure at higher levels
