NEW DELHI: Old fears related to recession, Fed rate hikes and spread of Covid in China empowered Nifty bears this week with the headline indices losing around 2.5%, the highest weekly loss in over 6 months.
Stocks from utilities, power, realty and metal were among the worst affected while BSE Pharma index was the only green spot as it gave positive returns led by re-emergence of Covid scare.
Globally markets remained volatile as it reacted to reported rise in covid cases in China and strong US GDP data. Brent crude oil price continues to trade around the $80 per barrel mark whereas the US 10-year treasury yield saw some upward movement.
Here are 7 factors that may impact equity markets this week:
Macro data
India will release the November month fiscal deficit figures on Dec 30. On 29th, US will release initial jobless claims. Analysts said strong economic data from the US indicate continuation of the hawkish stance of the Fed which is pushing bond yields up and equities down.
Covid cases
Covid case count in China and concern about possible recession will continue to influence the global equity market in the near term. The Indian government has also stepped up vigil in the wake of the new BF.7 variant of coronavirus.
IPO Watch
Sah Polymers IPO will open on December 30 while Radiant IPO will close on December 27. KFin Tech will list on 29th while Elin Electronics will debut on 30th.
Monthly expiry
December 29 will mark the last monthly and weekly derivative expiry of the calendar year 2022.
Corporate actions
Among major corporate actions expected this week, PSU lender Central
will have a board meeting on Dec 26 to consider the proposal of fundraising. ‘s buyback will also open on 26th.
On 28th, Capri Global Capital will have a board meeting to consider rights issue.
Technical factors
Nifty formed a long negative candle on the weekly charts, which indicates sharp downside momentum in the market.
“The immediate support for the Index is placed around 17700 levels followed by 17400 levels and resistance is capped at 18200 levels. We would wait on the sidelines and not commit to fresh longs yet,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.
FII flow
NSDL data shows FIIs have invested over Rs 7,200 crore so far in December. “FIIs are likely to turn cautious in the near term. Macro data from the US and Covid news will drive FII flows and the markets in the near term,” said Dr.V K Vijayakumar, Chief Investment Strategist at
.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
