Stock markets may remain on tenterhooks amid rising Covid-19 cases

According to analysts, Indian stock markets are likely to be volatile as the number of new Covid-19 cases have been growing at an alarming rate across the country.

New Delhi: Stock markets may witness a volatile trend in the holiday-shortened week ahead and would be majorly driven by the COVID-19 situation in the country and global cues, analysts said.

Markets would remain closed on Monday for Holi and on Friday for Good Friday.

"Investors would keep a close eye on coronavirus situation and movement of the US bond yield," said Satish Kumar, Research Analyst, Choice Broking.

Last week, the 30-share BSE benchmark Sensex declined 849.74 points or 1.70 per cent.

Rising COVID-19 cases in the country have dented market sentiment of late.

"This week is a truncated one as far as Indian markets are concerned due to couple of holidays (Monday- Holi and Friday -Good Friday), hence traders would watch the global cues closely," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Nirali Shah, Head - Equity Research, Samco Securities said, "With no major events in this week, markets may continue to remain volatile especially because of rising cases."

Besides, auto stocks would remain in focus amid sales data announcement at the beginning of the calendar month on Thursday.

Bourses would also track Brent crude, movement of rupee and investment pattern of foreign institutional investors.

"Market was in a consolidation stage due to fear of the second wave of COVID-19 and high valuation. The stability in the market depends on the pace of vaccination and fourth-quarter results," said Vinod Nair, Head of Research at Geojit Financial Services.

According to the official data released Monday, 68,020 fresh Covid-19 cases were reported in India over the past 24 hours, making it the biggest one-day surge since October.

Moreover, investors are worried as the cases are growing at an alarming rate in industrial regions of Tamil Nadu, Karnataka, and, more importantly, Maharashtra.

According to the union health ministry data, Maharashtra alone accounted for 40,414 new cases and 108 deaths in the last 24 hours.

(With PTI Inputs)