New Cases Of Corona Rising, Increased Investor Concern !!!

The sentiment of the stock market is deteriorating due to the ever increasing cases of Corona. Due to this, the market has seen a lot of ups and downs in the past week. However, the RBI kept interest rates at a constant rate for the fifth time in the last week, leading to a recovery in the market. But the lockdown put pressure on banking stocks and the overall market declined. Today Sensex lost 1707 points to end at 47883 and the Nifty was down 524 points at 14310. The Bank Nifty index dropped 1656 points to 30792. However, midcap and smallcap sectors have given tremendous returns to investors. The IT and pharma sectors witnessed strong buying due to the constantly weakening rupee against the US dollar. Both indices gained 4-6% in the past week.

In terms of overall market, there is a possibility of huge market volatility in the medium term. There are two main reasons for this, the March quarter results and new cases of corona epidemic. In such a situation, shopping in select sectors may fall in some. In this, IT and banking shares can be in focus.

Five big events will be very important for investors this week...

Fourth quarter results of 2020-21: Today, IT sector giant TCS came out with quarterly results. With this, the fourth quarter results will start coming. About 21 companies, including Infosys, Wipro, HDFC Bank, Mindtree, Hathaway Bhavani, HDIL, Lloyd Metal, will present quarterly results this week.

New corona cases and lockdown status: Corona was confirmed in one lakh 52 thousand 565 people in the country on Saturday. For the first time since the onset of the epidemic, so many infected have been identified in a single day. In the last 24 hours, 90,328 people recovered and 838 people died. The recovery rate has also come down to close to 90%, which was 93.3% on Friday. At the same time, 100 million people have been vaccinated in the country so far.

Lockdown is being imposed in major states of the country to prevent the infection of Corona. Kerala states including Maharashtra, UP, Delhi, Madhya Pradesh, Gujarat have night curfew and total lockdown.

The impact of the lockdown on the banking sector: The banking sector is being severely affected by lock-in-place and increasing strictures in major states. Because this is affecting the quality asset of the bank. Meaning other banking businesses including debt collection will be completely affected. The result of this was that the bank index lost more than 4% last week. It may fall even further with increasing hardening. This will affect the sentiment of the overall market.

Domestic economy data will come: On Monday of this week, economy data will also come. It will release data on industrial production for the month of February and retail inflation for March, while on Wednesday the government will release the data of wholesale inflation. In January, industrial production fell 1.6% due to a decline in the manufacturing and mining sector. At the same time, retail inflation rose to 5.03% in February from 4.06% in January, due to the rise in food prices. Similarly, trade data will be made public on Thursday and Foreign Reserve Exchange data on Friday.

The rupee will keep an eye on the move: The rupee has weakened by 161 paise against the dollar due to rising new cases of corona, spending on vaccine and RBI's plan to buy bonds. Now the price of one US dollar has been increased to 74.43 rupees. The rupee came to this level on November 4, 2019. According to market analysts, in the next few days, the rupee may again see a strength. Because the US Fed Reserve's Monetary Policy meeting is going to happen soon.