New Delhi: Stock markets will focus on global cues and fresh news flow on Covid-19 pandemic for further cues in a holiday-shortened week ahead, according to analysts.
Equity markets wil remain closed on Thursday for ‘Ram Navami’.
“The stimulus package announced by the government and the RBI will have limited effect, until the actual impact of the contagion is known, both economically and with the number of infections. In spite of the relief rally seen this week, investors will need to be conservative in their investments and still focus only on accumulating quality stocks and not go all in,” Vinod Nair, Head of Research, Geojit Financial Services said.
Vikas Jain, Senior Research Analyst, Reliance Securities said, “The uncertainty will keep the markets nervous and going ahead markets would now focus more on global cues and fresh news flow of Covid-19 pandemic”.
PMI data for the manufacturing sector is scheduled to be released Thursday.
Also, auto companies will come out with their monthly sales data, which will keep the sector buzzing.
“The overall trend is bearish and the recent rebound was just a counter move,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
The Reserve Bank of India (RBI) Friday cut benchmark interest rate by 75 basis points to 4.4 per cent to deal with the hardship caused due to the outbreak of COVID-19.
“Liquidity booster, rate cut and moratorium is complete package for the time being. Government needs to take measures to revive demand as soon as lockdown is lifted RBI does whatever it takes to make banks, markets Covid-19 resistant,” Nirmal Jain, Chairman, IIFL Group said.
While the coordinated stimulus action from governments around the world has offered some respite, the volatility in the market is likely to continue as there is no certainty as to how long the problem will persist and its repercussions on the economy. It would continue to track the trend in coronavirus cases globally and the economic impact of lockdowns undertaken by several countries, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Over the last week, the BSE benchmark index fell by 100.37 points to close at 29,815.59 Friday.
(PTI)
