InvestorQ : What is your quick view as stock markets resume trading on 14 May after a holiday?
Arusha Ray made post

What is your quick view as stock markets resume trading on 14 May after a holiday?

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diksha shah answered.
2 months ago
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Due to Id celebrations, the Indian markets were closed on 13 May and will resume operations on 14 May. This is also the last trading day of the week, so some caution is warranted. Global markets were bullish on Thursday, there will still be some caution ahead of the weekend as well as the COVID uncertainty overhang in India.

Rating agencies have now starting giving warnings that there could be a sovereign downgrade if the vaccinations did not proceed fast. There are worries about the macro implications which pulled down the markets sharply on 12 May. Metals and banks were under pressure although smaller niche players have held up well.

FPI action was negative on Wednesday as the foreign investors sold Rs.1261 crore and even the domestic institutions like mutual funds and insurance companies sold Rs.705 crore of equities. For May till date, FPIs have already expressed real concerns over the likely faltering of growth in India post the COVID resurgence in the last 2 months.

US inflation at 4% on Wednesday was the big scare but markets appear to have recovered after that. On Thursday, the Dow and NASDAQ bounced back sharply after the slump on Wednesday. Europe was relatively more tepid. SGX Nifty is giving flat to negative indications and a lot will depend on emerging cues from Asia.

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