Indian Markets Could Remain Sideways After US Stocks Close Strong
US markets closed strong on Monday as President Trump clarified that United States will continue its emergency measures against coronavirus till April 30. Earlier, Trump had indicated that he planned to lift any restrictions by Easter and health experts were concerned about this hectic move. However, Trump has finally agreed that the situation is still difficult and it might take longer in order to fight the epidemic. Investors were calm as this would mean that the US government will allocate more resources to deal with coronavirus.
Another positive for the markets was news from some pharmaceutical companies about tests and vaccine for coronavirus. Johnson & Johnson jumped by 8 percent after the company announced its plans to conduct human trials of its vaccine by September. Abbott stock was trading strong as the company announced 5-minute test for coronavirus.
Indian markets closed negative on Monday and considering the trend in the US markets, stocks in India could open slightly higher. Markets could trade sideways as investors are still worried about the impact of coronavirus. The economic impact will only be clear in the second and third quarter results. Stocks could see action based on news and the upcoming results. However, the results for quarter ending March 2020 won’t factor in the issues caused by coronavirus and the lockdowns in India.
Indian government is still under control of the situation. The number of cases in India has been low considering the stats in developed countries, especially in Western Europe and United States.
Indian investors have been in panic selling mode for the last two weeks but we have witnessed markets bouncing back from lower levels. The uncertainty will continue for next few weeks and long term investors might get very good chances to buy stocks at good valuations.