For this holiday-truncated week, coronavirus, developments at YES Bank, and oil price movement will dominate the trading sentiment.
Bears may not loosen their grip anytime soon as the spread of coronavirus and developments at YES Bank may keep the mood pessimistic at D-Street.
The benchmark S&P BSE Sensex and NSE’s Nifty50 declined nearly 2 per cent, each, during the past week, which was on the top of the 7 per cent loss seen in the week before that.
Besides, panic selling may continue at D-Street as the number of people infected with the novel coronavirus (Covid-19) topped 1,07,000 across the world, while claiming 3,600 lives globally. In India, 39 cases have been confirmed till Sunday.
Oil prices plunged nearly 21 per cent on Monday after Saudi Arabia slashed its official selling price. The world’s top oil exporter plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia. Brent crude futures slid $9.62 to $35.65 a barrel in chaotic trade, while U.S. crude shed $8.91 to $32.37.
Meanwhile, the Indian rupee breached 74 against the US dollar in the intra-day trade on Friday and closed at a 17-month low of 73.78.
In the early trade, E-Mini futures for the S&P 500 skid 4.7 per cent, Japan’s Nikkei fell 4.4 per cent, and Australia’s commodity-heavy market 5 erased per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan, too, lost 1.2 per cent.
On Friday, the Dow Jones fell 0.98 per cent, the S&P 500 lost 1.71 per cent, and the Nasdaq Composite dropped 1.87 per cent.
(With inputs from Reuters)