Global cues, geopolitics to guide equity markets

NEW DELHI: Trading in the equity markets this week will be guided by global cues, geopolitical developments and trend in coronavirus cases, analysts said.

Participants will also track macroeconomic signals like PMI data for the manufacturing and services sectors, scheduled to be announced during the week, they added.

“From here on, for India, the pace of return to normalisation would be the key along with trends of coronavirus case curve. Border tension with China would also remain a monitorable,” said Shibani Sircar Kurian, executive VP, fund manager & head- equity research, Kotak Mahindra AMC.

“We believe global cues will continue to dictate the market trend, in the absence of any major domestic event. Besides, macroeconomic data and auto sales figures will also be on the participants’ radar. Needless to say, they would continue to keep a close eye on India-china border dispute and any news of fresh escalation might not go well with the markets,” said Ajit Mishra, VP research, Religare Broking.

Markets have been on an upswing for the past few sessions, shrugging off rising Covid-19 cases and weak growth forecasts.

S&P Global Ratings had on Friday said the Indian economy is in “deep trouble”, as growth m,ay contract by 5% this fiscal amid difficulties in containing the virus, an anemic policy response and underlying vulnerabilities, especially in the financial sector. Jimeet Modi, Founder and CEO, SAMCO Securities & Stocknote, said markets will be significantly influenced by updates on the India-china standoff as well as Us-sino trade talks.