Even though the government unveiled a Rs 20 lakh crore package to revive the economy hit by Covid-19 pandemic, investors found little reasons to cheer the move. Hence, the benchmark indices ended the week on a flat note. Sensex ended just 25 points or 0.08% down at 31,097, while the broader Nifty 50 index finished flat at 9,137.
The much-awaited economic relief package cheered up the equity markets with a gain of 2% on the very next day, but then gave up its gains in the following days and closed the week down by nearly 2% on a weekly basis. Foreign portfolio investors (FPIs) continued to sell equities on Friday, offloading shares worth Rs 2,388 crore. On the other hand, domestic institutional investors bought equities worth Rs 1,225.53 crore on a net basis in the Indian equity market.
Domestic markets have been performing in line with global markets. In the coming week markets will be driven by the coronavirus newsflow, corporate earnings and norms of the fourth phase of the lockdown.
Government has made it clear that it will introduce the measures in tranches, but the execution is key and that will be followed by the markets.
Markets will also be driven by the rate of infections, lockdown 4.0 norms and any stock-specific earnings commentary in the ongoing results season.
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