Market Ahead, March 9: Top factors that could guide markets this week

The rapid spread of the novel coronavirus across the world and the unfolding YES Bank crisis are likely to keep the mood on the Dalal Street subdued in this holiday-shortened week. Equity markets would remain closed on Tuesday for 'Holi'.

As for coronavirus, new cases continued to rise across the world. More than 107,000 people have been infected worldwide and 3,600 have died till now. In Italy, the government has ordered a lockdown of large parts of the north of the country. Back home, five more people from Kerala have tested positive for coronavirus, taking the total number of cases in India to 39. 

Market participants will also keenly watch the YES Bank developments especially after the Enforcement Directorate on Sunday arrested the bank's co-founder Rana Kapoor under money laundering charges. The agency alleged that Kapoor and his family set up over a dozen shell firms to allegedly receive kickbacks to the tune of Rs 4,300 crore.

Besides, investors will also track key macroeconomic data announcements scheduled during the week to gauge the state of the economy. January's industrial and manufacturing production data and retail inflation for February are slated to be declared on Thursday while WPI inflation for February will be released on Friday.

Market participants will also focus on the Rupee's trajectory and oil price movement throughout the week. Oil plunged more than 20 per cent and Brent crude futures sank $9.51 to $35.76 after Saudi Arabia slashed its official selling price  The world’s top oil exporter plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia.

Meanwhile, the Indian rupee breached 74 against the US dollar in the intra-day trade on Friday and closed at a 17-month low of 73.78. 

Globally, E-Mini futures for the S&P 500 skid 4.7 per cent in Monday's early trade, Japan’s Nikkei fell 4.4 per cent, and Australia erased 5 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan, too, lost 1.2 per cent.

Back home, the Sensex plummeted 894 points to 37,577 on Friday and the Nifty50 index slid 280 points to 10,989. The downtrend is likely to continue today as the SGX Nifty is down around 200 points, indicating a gap-down start for domestic markets today.
Read by: Chirinjibi Thapa