The newsflow on coronavirus, crude oil prices, rupee movement and global cues will dictate the market direction next week.
After the announcement of a slew of measures by policymakers around the world amid coronavirus, Indian stock markets cheered on Friday. The 30-share Sensex gained 1,628 points or 5.75 per cent to close at 29,915. The broader Nifty50 rose 482 points or 5.83 per cent to settle at 8745. Throughout the week, the headline indices traded in negative territory as foreign portfolio investors (FPIs) remained sellers after pulling $11 billion from the debt and equity markets. In Friday’s trade, ONGC was the top Sensex gainer, up more than 18 per cent. “Needless to say, global cues and developments on the coronavirus front would dictate the market trend ahead also. We reiterate our advice limiting leveraged trades and utilising this phase to accumulate quality stocks,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
The week gone by- The headline indices Sensex and Nifty have fallen close to 10 per cent each since Monday’s opening level of 33,103 and 9,588 respectively. During the week, Indian stock market indices hit three-year low levels, where Sensex slipped below 27,000 level, while Nifty50 gave up the crucial 8,000-mark. Banking stocks were largely affected due to additional concerns regarding stressed assets, telecom sector and Yes Bank moratorium. The 6 per cent rebound in the Sensex, Nifty was witnessed due to the rebound in global indices and hopes of the stimulus package from the government.
Death toll from coronavirus rises– Indian Council of Medical Research (ICMR) has counted 271 total cases so far. India recorded 63 new cases on Friday, highest on a single day. The number of active cases has now jumped to 231 as per last data from the health ministry.
The week ahead- The newsflow on coronavirus, crude oil prices, rupee movement and global cues will dictate the market direction next week. At the time of market capitulation, it is witnessed that majority of the people sell in panic and smart people enter the market in search of value buying, says Jimeet Modi, Founder and CEO, Samco Securities and StockNote. “Value buying is emerging in sectors such as FMCG, consumer discretionary and other midcap value names. Next week can see further buying as a result of the very same capitulation. Hence, investors should accumulate quality businesses which are expected to tide through difficult times,” Modi said.
RBI lifts Yes Bank moratorium– Reserve Bank of India (RBI) had lifted the 30-day moratorium and withdrawal cap of Rs 50,000 on Wednesday. Yes Bank has resumed its full banking services. After the Union Cabinet approved the Yes Bank Reconstruction Scheme 2020, eight firms including HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Bandhan bank chipped in to invest in troubled bank.