Be ready for the bear attack!
Welcome to the fresh week on D-Street! The markets ended the last trading session near the day’s low and gave away the entire decent gains post RBI announcement. Over the weekend, if market participants were hoping for some Monday Magic to revive the sentiments on D-Street, which lost its pace after RBI announcement then, they will be certainly disappointed. Since on Monday morning, there are several news that have laid out the red carpet for the bears. To begin with, IMF Chief said ‘it is clear that we have entered a recession.’ And, US President Donald Trump extends Coronavirus lockdown period as sickness and death from the pandemic rise in US. At the time of writing this, SGX Nifty was down by almost 200 points at 8,442 levels.
Stock markets across Asian region were bleeding red at the start of the week on the back of severe fall on Wall Street. Japan’s Nikkei 225 has fallen 3.29 per cent, followed by China’s Shanghai Composite and Hong Kong’s Hang Seng, which were down by 1.71 and 1.45 per cent, respectively.
Back home, the markets ended on a mixed note on Friday amid high volatility. The key benchmark indices opened higher and extended its upmove, however, gains soon fizzled out despite big announcements by RBI to safeguard economy from the impact of Coronavirus. In the end, Nifty ended up by 0.22 per cent, while BSE Sensex slipped 0.44 per cent. The broader markets also had a mixed session wherein, Nifty Mid-cap dipped 0.64 per cent and Nifty Small-Cap gained 0.46 per cent. The sectoral indices exhibited mixed trend and sectors like Nifty Bank, Nifty Private Bank and Nifty Metal were the top gainers and on the flipside, Nifty Auto and Nifty Realty were the top losers.
On Friday, Wall Street ended in a sea of red and gave back some of the strongest gains experienced in the previous three sessions to see through another volatile week in US. Dow plunged 4.1 per cent, the tech-heavy Nasdaq fell 3.8 per cent and S&P 500 dropped 3.37 per cent. A flurry of bearish news took the wind out of European indices.