Market Ahead, March 25: Top factors that could guide markets today

Let's start with how things are looking for the Indian equity markets today. As of 7:20 AM, the SGX Nifty, was down 120 points, so expect a lower opening but not to the extent that we have seen over the last few days.

The big factor playing today in investors' mind will be the 21-day nationwide lockdown announced by Prime Minister Narendra Modi yesterday to contain the spread of fast-spreading novel coronavirus -- the COVID-19. The nationwide lockdown came into effect on Tuesday midnight and will continue until April 14.

The government has already deferred deadlines for filing tax returns, extended a tax amnesty program and promised more measures to support the economy amid the pandemic that has infected 421,413 people globally and 519 in India. 18,810 people have died from the virus across the world.

At the bourses, the Indian markets yesterday soared nearly 6 per cent intra-day but climbed off the top and closed 2.5 per cent higher as the relief measures announced by Finance Minister Nirmala Sitharaman left investors disappointed.

Experts said investors were pinning hopes on a big-bang stimulus package from the finance minister and although she did announce a slew of relief measures, she deferred major announcing an economic stimulus package.

However, the rest of the global markets closed in the green. Much of it has to do with the Wall street where the Dow soared 11.37 per cent, its biggest one-day percentage gain since 1933 after US lawmakers said they were close to a deal on a $2 trillion stimulus package to curb the coronavirus pandemic’s economic toll. The announcement injected optimism among the nervous investors and all three main US stock indexes rebounded strongly from Monday's brutal selloff. The S&P 500 jumped 9.4 per cent and the Nasdaq Composite rallied over 8 per cent.

Asian shares extended their rally on Wednesday in the wake of Wall Street’s big gains. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3 per cent with Australian shares rising 4.5 per cent and South Korean shares gaining 4 per cent. Japan’s Nikkei added 2 per cent.

Oil prices also extended gains for a third session as hopes for US stimulus offset fears from falling global demand. Brent crude was trading up 1.8 per cent at $27.64 a barrel.

And, in the end, here's a stock idea by HDFC Securities which suggests buying Infosys at Rs 593 for the target of Rs. 660 with stop-loss at Rs 560.

Read by: Kanishka Gupta