Indian benchmark indices were trading lower on Monday with Sensex falls below 41,000 level to touch an intraday low of 40,798.98, down 342.87 points in the early morning trade, as investors took money off the table amid concerns over the impact of coronavirus
on global economy. The Indian follows their Asian counterparts as on Monday Asian stocks fell as the death toll from a coronavirus outbreak surpassed the SARS epidemic.
This week Indian market would track macro data, developments surrounding the coronavirus outbreak as well as the Delhi poll results.
Global Cues:
- Coronavirus Spread: Indian as well as Investors around the world are likely to stay cautious regarding the threat to global economic growth from coronavirus spread. The coronavirus death toll in China increased to 908, well over the total of 774 who died from SARS epidemic in 2002-03. This led to Goldman Sachs cutting its Q1CY20 real GDP growth forecast for China to 4 per cent from 5.6 per cent earlier.
- Crude and Rupee Movement: Besides, key factors such as global crude oil movement and Indian rupee-US dollar trend would also influence trading. Oil prices extended their decline as the specter of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China. As a result, Brent crude was slipped 38 cents to $54.09 a barrel.
Domestic Factors:
- Delhi Assembly poll Result: Markets may also see a knee-jerk reaction to the results of the Delhi Assembly polls set to be declared tomorrow.
- Macro Data: Industrial production and retail inflation data is due on Wednesday,
while WPI inflation numbers will be released on Friday.
- Corporate Earnings: Corporate results for the December quarters will continue to flow in. Around 2,500 companies, including GAIL, Coal India, IRCTC, ONGC, and BPCL, are scheduled to announce their quarterly numbers this week.