Weekly View - Vinod Nair, Head of Research at Geojit Financial Services

The markets continued its volatile trading patterns and ended flat this week, driven by news of virus infections and its impact on the markets. In Spite of occasional relief rallies, reality check in the form of number of infections and dire economic data negatively impacted the markets. Earnings season has been lacklustre as expected and Management guidance for the next quarter has also not been very insightful. This shows that many companies are still grappling to assess the actual impact of the lockdown, and seems to be unsure of when things get back to normal. With the lockdown being extended and expected to be extended beyond May 3, the June quarter results will be much worse than the March quarter results. The closure of schemes by Franklin Templeton fund will definitely have an impact on investor confidence and could affect the already lower market volumes.

WEEK AHEAD

Markets are trading uncertain with the virus updates not giving any solace. Investors are looking forward to stimulus measures from the government to keep supporting the affected industries. The government has indicated that they will come out with more measures to support businesses. Additionally, the week ahead will also be driven by stock specific news regarding the business outlook of individual companies. Any easing of lockdown restrictions will be taken as a positive for the market as a whole. Next week we have IndusInd and Axis Bank reporting their results along with FMCG giant HUL.

Source : Equity Bulls

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