InvestorQ : What are the major trading and investment cues for the stock markets for the week commencing on 09 March 2020?
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What are the major trading and investment cues for the stock markets for the week commencing on 09 March 2020?

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1 year ago
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Yes Bank and the Coronavirus syndrome that will continue to direct the market trajectory in the coming week. Here are some key triggers for the week.

· Driving story will be the rapid global spread of the Coronavirus as deaths outside China are at 350 and India has reported close to 40 cases. That remains the overhang

· Psychological levels are the key to the week. Nifty closed below 11,000 and Sensex below 38,000. They will remain resistances this week

· Big event last week was the Yes Bank moratorium. It will keep smaller private banks under stress. Banks with higher gross NPAs to be more vulnerable

· SBI’s Rs.10,000 crore rescue plan will help Bank-Nifty bottom out after the huge correction last week. That could give a base to the market overall

· Keep an eye on a mega China stimulus during the week. It could be directed at boosting exports and trade and that could benefit all global markets

· Pressure intensified on Brent Crude prices as it plunged to $45/bbl. Russia’s refusal to support OPEC on supply cuts will pressure oil prices; a positive for mid caps in India

· Big bang BPCL divestment bids kick off. It will be the largest single divestment and could set the tone for the massive divestment plan next fiscal year

· FII selling on all days of March on global pandemic fears kept markets under pressure and the risk-off shift is likely keep markets volatile

· Yes Bank AT1 bonds write-off to trigger Rs.3000 crore losses to bond funds and could impact flows into debt funds and also force selling in risky assets

· IIP numbers for January to be announced on March 12. Markets will assess impact of the virus on output with focus on metals and capital goods

· CPI Inflation for February will also be announced on March 12 and could be key to RBI action, especially after the surprise 50 bps cut by the Fed

· Rupee weakens to Rs.73.80/$ on capital outflow worries. RBI intervention at 74 will be the key. Overall, weak rupee negative for markets.



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