Finsight (15th June 2020 to 19th June 2020)

Indian Equity Markets ended on a negative note for the week. Nifty 50 was down 1.7% and Sensex by 1.5% respectively.

Weekly Capsule

– US Fed sees interest rates staying near zero through 2022

The Federal Reserve kept interest rates near zero indicated that rate might stay as it is till 2022. Also, during the Fed meet US Fed Chairman Jerome Powell said that the US economy will shrink by 5% in the year 2020 but will see a growth only in FY 21.

– Telecom operator dues

The Supreme court has asked private telcos to provide for security and repayment of roadmap in an attempt to allow telcos to replay AGR dues over a 20 year period. And if telcos are not able to furnish those guarantees the apex court is likely to consider a shorter time frame which may not be good news for these players.

– Indian Economy to Bounce Back with Growth of 9.5% in Next Fiscal: Fitch

After a contraction in the current financial year, India’s economy is forecast to bounce back with a sharp growth rate of 9.5% next year provided it avoids further deterioration in financial sector health. It has forecasted a 5% contraction in the GDP in the ongoing financial year.

Nifty at glance 

Outlook for next week:

We feel that the markets will tend to be volatile over the next week also. Investors are suggested to invest only in staggered manner. The important number to watchout for next week in Indian market would be India Vix which is currently at 30-32 levels. In upcoming week markets are expected to remain volatile and this vix levels to elevate.