What are the major trading and investing cues for the trading week starting on 13 April 2020?

The week will again be a truncated week with no trading on 14 April on account of Ambedkar Jayanti. Here are the cues for the coming week markets.

· The markets will watch the huge COVID-19 case additions in the US and UK, which are critical business partners for India. Indian lockdown extension will be important.

· CPI inflation on 13 April will be evaluated to see if lower levels are being driven by demand slowdown or supply push

· FPIs infused Rs.4422 crore during the week. It remains to be seen if the stimulus hopes have converted FPIs into net buyers.

· OPEC and Russia could support supply cuts of 10 million bpd of crude. Any cut above 10 million bpd will be positive for crude prices

· Expect the markets to react to the 4.5% IIP growth for February 2020. However, markets will be worried about the March and April impact of lockdown on IIP

· Trade data will be announced on 15 April. More than lower trade deficit, markets will focus on robust export growth prospects

· Markets will be keen to see if there is a follow up to the previous stimulus package. The SME package is expected at Rs.1 trillion plus.

· Rupee weakened to 76.55/$ with little support from RBI and markets in general and FPIs in particular will focus on currency traction

· Can pharma continue to drive market sentiments? Thrust on generics, lenient FDA norms and low valuations have helped and that could hold the key to sentiments

· Good news is that VIX has cooled below 50 from a high of 86. But it needs to drop below the psychological 30-levels to confirm any market uptrend

· Big results like TCS, Wipro and HDFC bank kick off in the week. Markets will look out for COVID-19 impact cues

· US data points on jobless claims will be keenly watched. After doubling to 6 million in 2 weeks, any further spike will signal recession possibilities in the US