Market Outlook With Anil Singhvi: Rising Covid-19 cases to dampen Indian markets, says Market Guru

Market Outlook With Anil Singhvi: The Indian markets are unlikely to get back into the confident mode it was in, until the rising cases of the Covid-19 peak out, Zee Business Managing Editor and Market Guru Anil Singhvi said while discussing the subject of Global Markets versus Local Markets during a special show today.  

India has surpassed the 2-lakh mark linked to Covid-19 cases on a daily basis on Thursday and over 1000 deaths have been reported in the country due to the novel virus. 

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In the discussion of Global Markets versus Local Markets, the Market Guru says that the way global market, especially US markets, are soaring as compared to Indian markets, it is completely based on factors that are taking place in America. He adds, low US jobless data, decrease in US 10-year bond yields, retail consumption surge and the strong economic recovery are the factors driving the US markets. 

Benchmark indices of the US such as Dow Jones and S&P 500 have reported new highs now for the eleventh straight time in history. Singhvi says, no other international markets have achieved this feat as the economic recovery in other countries is comparatively slow. 

अमेरिकी बाजार में तेजी के क्या हैं कारण?

Global Vs Local नहीं, Local Vs Local है चाल…

अनिल सिंघवी- बॉन्ड यील्ड में तेजी, अच्छे रिटेल बिक्री आंकड़ों के दम पर दौड़ लगा रहे अमेरिकी बाजार... घरेलू बाजार में गिरावट की वजह कोरोना के रिकॉर्ड बढ़ते मामले#EditorsTake @AnilSinghvi_ pic.twitter.com/iZthUsUhGm

— Zee Business (@ZeeBusiness) April 16, 2021

The US Jobless data that was released on Thursday is at a 12-13-month low at 5.75 lakh. Similarly, retail consumption has increased to around 10 per cent against an expectation of six per cent, this shows that consumer sentiment is strong, and on top of that US 10-year yields have also slipped from 1.62 to 1.57 per cent. 

Denying the fact that the US markets surge is due to global markets contribution, Singhvi says they are growing only on their own clout and strength; economic recovery, and good macro data. Moreover, The US markets definitely give psychological support to other markets, Singhvi affirmed. 

On the contrary, the Indian markets are taking a beating due to the likely second wave of corona cases, he says. He pointed out that Indian markets are lackadaisical - one, because of the rising cases of Covid-19; two, the fear of the second lockdown is still hurting market sentiment. 

However, the Market Guru was optimistic about the growth potential in the Indian market. Singhvi said that economic growth in India is seen as strong and the updates we’re getting this quarter are also quite good.  

The government, with respect to rising Covid-19 cases, has come out with stringent restrictions but it’s on the people to follow or not, the Market Guru said. 

Singhvi predicted that it becomes a bit difficult to participate in global rally amid a surge in Covid-19 cases. If this continues, there are more chances of stricter measures that the government could take, one of them is a lockdown. 

The moment corona concerns are gone and the market realises that it has reached its peak, and once the market had made its short-term correction of 14250 or 13850 or 13250 levels, they will return to the growth path, Singhvi concluded.