INSUBCONTINENT EXCLUSIVE:
Coronavirus continued to grab headlines during the week gone by and the next week may not be much different as the number of new cases is
Along with this, new developments in the YES Bank story will be a key factor dictating market direction.
Meanwhile, the government will
release key macroeconomic data, including those for factory output and inflation, which will be watched keenly to gauge the state of the
clarity emerges on financial distress (YES Bank and Covid-19)
Securities - StockNote.
Modi advised investors to accumulate respective leaders from private sector banks, NBFC, FMCG, IT and pharmaceutical
sectors, as they are likely to deliver good return on investment from a 3-5 years perspective.
Here are the factors that may drive market
this week:
Coronavirus scare: The Covid-19, or coronavirus, outbreak is far from peaking as the number of cases continued to rise across the
According to latest figures from the World Health Organization, there were at least 103,168 cases till now while global deaths were pegged
Italian Prime Minister Giuseppe Conte announced early Sunday that the entire region of Lombardy and a number of provinces in other regions
were put under lockdown, affecting a quarter of the Italian population
Italy is the worst affected country in Europe
heightened volatility for the time being and investors will be watchful for any news regarding the number of confirmed coronavirus cases
YES Bank saga: Marketmen will keenly watch the unfolding developments in the YES Bank saga
State Bank of India, which has shown interest in reviving the private lender, said it would invest up to Rs 10,000 crore
The fresh infusion will help the bank survive, but the future growth is still questionable
until a resolution is reached
The bank has a huge retail shareholding at 48 per cent and any decision will affect them
Shares of the company saw worst ever fall on Friday dropping 56 per cent to Rs 16.20
Any adverse news going ahead may hit the prices further
Many brokerages have target price on the bank as low as Re 1
FII outflow: Foreign institutional investors are in sell-off mode
In last 15 sessions, they have withdrawn a net Rs 21,937 crore from Indian markets, as per NSE data compiled by Accord Fintech
February 24 onwards, FIIs have been net sellers of equities in India every day
Market veteran Raamdeo Agrawal said it was largely because ETF investors were withdrawing money
ETF redemptions are there and those are being encashed here
towards 75 level: A superior performance of dollar against the rupee as worried investors as depreciating rupee means higher import costs
In the past week, the rupee rose over 2 per cent to cross 74 level against the US dollar
IT and US-focused pharma companies may benefit from this.
IIP data: Indian government will release factory output data for January on March
Factory output contracted in December
The National Statistical Office (NSO) said that the index of industrial production (IIP) shrank 0.3 per cent in December from a 1.8 per cent
increase from 2.1 per cent in December, data released by the commerce and industry ministry showed.
February Inflation Print: Market
participants will also keep a keen eye on inflation data for February to be released on March 12
RBI will also watch the numbers as its decision to cut interest rates in the next policy meet depends on this
Retail inflation, measured by Consumer Price Index, worsened to 7.59 per cent in January, government data showed
The inflation remained above the Reserve Bank of India's medium-term target of 4 per cent for a fourth month in a row
will hope for a moderation if it expects a rate cut.
Technical outlook: Nifty on Friday broke below the immediate support of 11,000 and
formed an indecisive 'Spinning Top' on the daily chart
The index is in the oversold zone and zone around 10,800-900 could offer some support to the index
trading at the lower end of the rising channel, which has supported multiple selloffs in the past and will therefore act as a strong support
bottoms, channel support along with deep oversold levels will act as strong support for the bears to cover their short positions and will
give bulls a chance to make a short term come back, he said.
