| Trigger for the Week |
How will it impact? |
| |
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| Ø Worsening trade war between the US and China will be an overhang |
Ø Trump has already started sanctions on Huawei and that is likely to increase risk perception for equities
|
| Ø COVID-19 rescue package to have some positives this week |
Ø Sectors like HFCs, NBFCs, rural focused sectors, power companies and mining companies to see some buying
|
| Ø Power Finance stocks to come under pressure this week |
Ø REC and PFC will bear the bulk of the Rs.90,000 crore funding for DISCOMS and that will hurt margins
|
| Ø Markets likely to be pressured by extension of lockdown |
Ø The lockdown being predominantly extended to May 31 in key geographies could lead to sell-off in index stocks
|
| Ø Rising COVID-19 cases in India could be an overhang on sentiments |
Ø India has crossed China in number of afflictions and the trend will raise the spectre of further lockdowns
|
| Ø Focus for the week shifts to the Reliance mega rights issue |
Ø Reliance Rs.53,125 crore rights opens on May 20 and the partly paid approach could be positive for liquidity
|
| Ø Vedanta delisting proposal could disappoint markets |
Ø Investors upset over low price offered for delisting and the board meet on May 18 will hold the key
|
| Ø Big earnings lined up for the coming week will impact sentiments |
Ø Earnings from Bharti, Bajaj Finance, Bajaj Auto, Ultratech and Avenue Supermarts could determine trend ahead
|
| Ø Oil holds $30/bbl and that should be positive for markets |
Ø The big risk for the markets will be the WTI futures settlement on 19 May, after the CFTC warning
|
| Ø Level of 9000 remains critical for the Nifty to take support |
Ø Markets were non-directional last week but if 9000 breaks on Nifty, it opens avenues for sharp downsides
|
| Ø Key data points at the global level could impact markets |
Ø Market direction will depend on US jobs data, housing, FOMC minutes, EU manufacturing, Japanese IIP etc
|
| Ø Sharp fall in US treasury holdings may be good news for rupee |
Ø The $22 billion fall in US treasury holdings is a sign of RBI ready to support rupee, which was visible last week
|
| Ø Keep an eye on mining and aluminium stocks this week |
Ø Stocks could see meaningful impact from opening up of coal mining and bauxite mining to private sector
|
| Ø Fiscal deficit levels could impact India sovereign ratings |
Ø With fiscal deficit likely to scale up to 7.9% of GDP, a sovereign downgrade remains a big risk for markets
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