| Trigger for the Week |
How will it impact? |
- Global spread of the Coronavirus will be the key driver for the week
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- Deaths outside China are at s350 and India has reported close to 40 cases. That will be the overhang
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- Nifty closes below 11,000 and the Sensex below 38,000
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- These were two levels that were broken in 2019 with a big effort. Now they will remain resistances this week
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- Yes Bank moratorium could keep smaller private banks in stress
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- Banks with higher gross NPAs are likely to continue to be more vulnerable in the coming week too
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- SBI rescue plan and depositor rescue will help Bank Nifty bottom
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- Bank Nifty saw a huge correction last week and that could find support; giving a base to the market overall
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- China is expected to announce major stimulus during the week
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- The stimulus is expected to give a boost to exports which had fallen by 16% after the virus scare
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- Brent Crude prices plunge to $45/bbl as cartel disagrees
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- Russia’s refusal to support OPEC on supply cuts will keep pressure on oil prices; a positive for Indian mid caps
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- BPCL divestment bids could be the key to government divestment
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- It will be the largest single divestment and could set the tone for the massive divestment plan next fiscal year
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- FII selling continued on all days of March on global pandemic fears
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- FII selling has kept markets under pressure and the risk-off shift is likely to keep the pressure on
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- Global gold prices get closer to $1700/oz on macro fears
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- The 35% rally in gold in the last one year will keep up pressure on equities as investors turn risk-off
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- Yes Bank AT1 bonds to trigger Rs.3000 crore losses to bond funds
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- This could impact flows into debt funds and also force selling in most risky assets during the week
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- IIP numbers for January expected to be announced on March 12
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- Markets will take cues from the impact of the virus on output with focus on metals and capital goods
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- CPI Inflation for February to be announced on March 12
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- For markets, this assumes a lot of importance as it gives hints of the direction for monetary policy
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- RBI action to be watched after Fed cut rates by 50 basis points
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- Markets are expecting early RBI action on rates and the bond yields are already at multi-year lows of 6.18%
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- Rupee weakens closer to Rs.73.80/$ on capital outflow worries
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- Any weakening beyond 74/$ will be negative for markets and RBI intervention in USD markets will be watched
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