The quarterly results of the companies, developments related to the Corona virus and the decision of the US central bank Federal Reserve on interest rates will determine the direction of the stock markets this week. Analysts have expressed this opinion. Markets will remain closed on ‘Maharashtra Day’ on Friday.
Analysts said Franklin Templeton Mutual Fund has closed six bond schemes. In such a situation, the eyes of retail investors will also be on the impact of this development on the market.
Siddharth Khemka, head of retail research at Motilal Oswal Financial Services, said, “Investors are still unsure of the impact the corona virus will have on companies. Going forward, the market will be determined by the quarterly results of the companies, crude oil prices, rupee fluctuations against the dollar, developments related to corona virus”. Khemka said that if some kind of relief package is announced by the government, it will provide some interim relief.
Franklin Templeton Mutual Fund will also be affected
Deepak Jasani, head of research, HDFC Securities, said, “The two-day meeting of the US central bank begins on April 28. The decision on interest rates will come on April 29. Indian markets were unable to record weekly gains for the third consecutive week due to the enforced shutdown due to Covid-19. The latest case of Franklin Templeton will add pressure to the economy, especially the financial sector.
Franklin Templeton Mutual Fund on Thursday announced the closure of six bond schemes due to withdrawal pressure and cash shortage in the bond market. The assets under management in these schemes are Rs 25,000 crore. The BSE Sensex lost 536 points on Friday due to this development.
Waiting for announcement of relief package
Vinod Nair, head of research at Geojit Financial Services, said the market is not getting relief from the virus-related developments. Investors are eyeing the government. They are waiting for the government to announce some relief package. Nair said this week, one can see fluctuations in stocks especially associated with some companies. Any relaxation in the lockdown will have a positive impact on the market. Quarterly results of IndusIand Bank and Axis Bank will come this week. Apart from this, FMCG sector giant Hindustan Unilever will also announce its quarterly results. The 30-share BSE Sensex lost 261.50 points or 0.82 per cent in the previous week.
Coronavirus cases have reached 28,380 in India
Coronavirus has created a turmoil in the entire world. The spread is so rapid that today the total coronavirus cases in world has reached 2.95m. The death toll has reached 205k and 861k people have recovered till now. It is wreaking havoc in the entire world. Each country today is battling its spread.
The highest cases are in US. Today, 986k people are infected in US with 109k recoveries and 55,417 deaths.
In India, right now 28,380 people are infected and 6,363 people have recovered. Total people died has reached 886. In the last 24 hours more than 1600 new cases have tested positive.