Analysts said RBI’s interest rate decision, macroeconomic data, COVID-19 trends and global cues will drive the equity markets this week. He also said that there may be some consolidation in the markets in the income season starting from mid-April.
“Following the recent announcement of an investment plan by the US President, Indian markets are likely to track global signals. In addition, investors will now focus on the upcoming quarterly results, which will start from mid-April, ”said Siddharth Khemka, Head – Retail Research, Motilal Oswal Financial Services Limited. “Naturally, the second wave of COVID-19 rapidly spreading in India remains a concern and there is a possibility of a possible lockdown. Khemka said that overall the market is likely to remain waiting for new positive triggers for some time.
Nirali Shah, Head – Equity Research, SAMCO Securities, said that a notable event to look forward to this week will be the MPC meeting of the central bank. The Monetary Policy Committee headed by RBI Governor is scheduled to meet from 5-7 April.
PMI data for manufacturing and service sectors are also to be announced this week, which will also affect business sentiments. RBI’s policy and earnings season may be the next trigger for the market. The start of FY 2012 has been very good and more action can be seen with the beginning of the earnings season of April.
Last week, stock markets were closed on Mondays and Fridays for the holidays. The 30-share BSE index gained 1,021.33 points or 2 percent in the week. Ajit Mishra, VP – Research, Religare Broking Ltd said, “In the near future, positive bias is expected to continue, with increasing cases of COVIDs in India continuing to be a major concern. As the Q4 earnings season draws to a close, investors’ focus will be on earnings announcements and management commentary. “Hemant Kanwala, Head Equity, Kotak Mahindra Life Insurance Company Limited, said,” The second wave of COVIDs and higher valuations are expected to maintain market volatility. “
The 30-share BSE benchmark was up 20,040.66 points or 68 percent in the last financial year.