InvestorQ : What are the major trading and investment cues for the stock market week commencing on 20 April 2020?
Dia Deshpande made post

What are the major trading and investment cues for the stock market week commencing on 20 April 2020?

Answer
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Ria Jain answered.
6 months ago


After two weeks of rally in the Nifty and Sensex, the coming week could be flat to weak as market return to reality. Here are the major triggers.

· The COVID-19 numbers and the phased resumption of select services from April 20th will hold the key. It is essential that India stops the surge and the US cases taper

· China growth contracted by 6.8% in the March quarter and that could have negative ramifications for the metal sector in India

· Due to limited RBI intervention in the dollar market, any weakness in rupee beyond 77/$ could make FPI sentiments negative

· Markets may watch for selling pressure from mutual funds on the back of redemption pressures and tepid inflows into equity funds

· FPI pullout relatively lower at Rs.12,600 crore in April and this could be positive after the sharp selling in March this year

· FIEO has warned of 1.5 crore job losses in exports and a steep rise in bank NPAs so the 40% contraction in trade volumes could be a concern for banks

· With oil supply cut by 15 million bpd and US inventories rising, the key to global markets will be crude staying above $30/bbl

· Big results of ACC, CRISIL, ICICI Pru, Tata Elxsi and Mindtree expected this week. Lag effect of TCS, Wipro and HDFC Bank could be seen this week.

· After aggressive RBI NBFC stimulus, fiscal boost to MSMEs and overall business will be keenly awaited by markets during the week

· Gilead’s COVID drug efforts to be the key. If drug trials and vaccine tests give positive results, it could be a big boost for global market sentiments

Financials could react positively to RBI policy boost with special focus on mid-sized NBFCs and realty stocks.