InvestorQ : What is your market view for 20 April? Do you foresee a market recovery from this point?
Archita Jajjoo made post

What is your market view for 20 April? Do you foresee a market recovery from this point?

Answer
image
diksha shah answered.
8 months ago
Follow

Sensex corrected by nearly 1300 points at one point on Monday but short covering and some buying from domestic institutions ensured that the markets bounced back. Despite the short covering and the buying, the Sensex closed 883 points down. This is the fifth consecutive Monday when the market have closed with a correction.

Pharma was once again the only sector to show small gains on 19 April even as IT and FMCG were only marginally in the negative. However, banks and rate sensitives were the worst hit as fears mounted that the slowdown could once again impact the asset quality of the banks. Already, cheque bounces and payment delays had started last month.

Foreign portfolio investor or FPI action was negative on Monday as Rs.1,634 crore worth of equities were sold by the global investors. The domestic institutions like MFs and insurances bought Rs.2,356 crore of equities on 19 April. The sharp domestic buying in the second half was clearly intended to support the market in the midst of panic and give confidence.

Monday cues were pretty weak globally across most markets. Dow Jones Index was around 40 bps lower while NASDAQ was 100 bps lower. European markets were also in the negative on the back of growth concerns. The SGX Nifty has shown some positive direction but it remains to be seen if it can be sustained. Asian cues could hold the key.

0 Views