Geo-political and Covid-19 concerns may impact market

"Many of our employees are saying that their productivity has gone up, and feedback from clients on research reports is good," she said.

But not everyone in the world of finance is in a position to work remotely on a long-term basis. While banks and stock depositories had been open through the lockdown, designated as "essential services," dealers who execute trades may have to return to office in greater numbers once regulatory relaxations are rolled back.

"Businesses like ours where there's sensitivity of information, at least some part of staff like dealers have to be in the office" said Jinesh Gopani, head of equities at Axis Asset Management Co. "Those parts were allowed at home because it was a crisis. But it is not ideal from the regulator's point of view in the long-term."

For now, only a fraction of the staff in the financialservices industry is back in office. The unexpected benefits of working remotely mean it's likely to be a favoured option well into the future.

"Productivity has improved dramatically because of removing unproductive travel time," said Gopani.

—Bloomberg

Geopolitical concerns and possibility of a second wave of Covid-19 remain the near term risks which could impact investor sentiments in the market, which has made strong recovery in June so far and trades 38.23 higher from the March lows of 7511.10 for Nifty-50.

The market mood remained buoyant last fortnight on expectations of earlier-than-anticipated normalisation of activities, as most states committed to remain open despite continuous increase in daily Covid cases, said Sanjeev Zarbade, vice president, private client group research, Kotak Securities.

However, both in US and India Covid cases are on the rise, forcing extension of lockdowns in the red zones, even parts of China and South Korea are seeing a second wave of cases.

The good news is that rural India is getting early monsoon rains vital for starting agricultural activity and globlal crude oil prices are stable, so vital for Indian economy.

According to Indian Meteorological Department the Southwest Monsoon has covered the entire country on June 26, 12 days ahead of the normal date.

Sectors and companies heavily dependent on Chinese imports like Telecom, Auto could get impacted from geo-political situations on the borders. With July starts another earnings season and investors would keep an eye on earnings previews too for IT companies, Banks and other early birds.