Equity markets will be guided this week by interest rate decisions, macroeconomic data, COVID-19 patterns, and global cues, according to analysts. They also predicted that the markets will consolidate ahead of the earnings season, which begins in mid-April.
“Going forward, Indian markets are likely to follow global cues following President Trump’s recent announcement of an investment strategy. Investors will now be concentrating on the upcoming quarterly performance, which will begin in mid-April,” said Siddhartha Khemka, Motilal Oswal Financial Services Ltd’s Head of Retail Research.
“Concerns about the fast-spreading second wave of COVID-19 in India continue to grow, and the threat of lockdowns looms large. Overall, markets are likely to stay in consolidation mode for some time, awaiting new optimistic triggers, according to Khemka. The central bank’s MPC meeting, according to Nirali Shah, Head – Equity Research, Samco Securities, is a noteworthy event to look forward to this week.
The Monetary Policy Committee, chaired by the Governor of the Reserve Bank of India, will meet from April 5-7. This week will also see the release of PMI data for the manufacturing and services sectors, which will affect trading sentiment.
The market could be triggered again in the future by RBI policy and earnings season. According to Rusmik Oza, Executive Vice President and Head of Fundamental Research at Kotak Securities, “the start of FY22 has been very strong, and April month will likely see more activity with the start of the earnings season.”
The financial markets were closed for the holidays on Monday and Friday last week. In the last week, the 30-share BSE index gained 1,021.33 points or 2%. “In the near term, positive bias is expected to continue, but rising COVID cases in India will remain a key concern,” said Ajit Mishra, VP – Research, Religare Broking Ltd. Investors’ attention will turn to earnings reports and management comments as the fourth-quarter earnings season approaches.”
In the short term, the second wave of COVID and high valuations are expected to keep markets volatile,” said Hemant Kanawala, Head Equity, Kotak Mahindra Life Insurance Co Ltd. Last fiscal, the 30-share BSE benchmark rose by 68 per cent to 20,040.66 points.