Investors will track coronavirus-related newsflow, global cues, and oil price movement for market direction today as they return to their trading terminals after a day-long break.
The number of Coronavirus victims in India crossed 61 after Kerala, Maharashtra and Karnataka reported 14 new cases yesterday. More than 116,000 people have been infected by the coronavirus globally and over 4,000 have died as the fast-spreading disease threatens to slow down the global economic growth.
US President Donald Trump said he will take “major steps” to allay market fears by asking Congress for a fiscal stimulus package to include a payroll tax cut, among other measures.
Reacting to Trump's comment, Wall Street roared back to life on Tuesday, rebounding from the brink of bear market confirmation as bargain-hunting and hopes of government stimulus calmed investors’ fears surrounding the coronavirus and growing signs of imminent recession. All three major indexes: the Dow Jones, the S&P 500, and the Nasdaq Composite all gained 4.9 per cent.
However, in Asia, shares fell in Wednesday's early trade as investors grew skeptical about Washington’s stimulus package to fight the outbreak. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.04 per cent. Australian shares were down 1.3 per cent and Japan's Nikkei index erased early losses to rise 0.24 per cent. The SGX Nifty indicated a lower start for the indices today.
In commodities, oil prices rebounded from Monday’s largest percentage drop since the 1991 Gulf War, with Brent crude rising 10 per cent after Russia indicated it was open to talks with OPEC.
Hence, traders will today actively track the oil price trajectory as well as the Rupee which plunged to a 17-month low of 74.17 to a dollar on Monday. Investors might also track the happenings in Madhya Pradesh after Congress leader Jyotiraditya Scindia resigned from the party yesterday, taking 22 legislators with him—an event that may pull down the 15-month-old Kamal Nath government in the state.
Back home, the Sensex plunged 1,942 points to 35,635 on Monday and the Nifty tanked 538 points to 10,451. According to analysts, if the Nifty breaches 10,300, it can further continue its downtrend to test the support of 10,000-10,100. However, as pull back rally is already due, traders can create fresh buying if Nifty manages to break the level of 10,800 on closing basis.
(Read by: Chirinjibi Thapa)
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