Markets started the week on a pessimistic note and shed over 3 percent. It seems the details of the stimulus package fell short of market expectations, which trigger a sharp reaction on the downside. The selling pressure was widespread wherein the banking, financials, auto and realty counters were trashed badly. We had a similar situation on the broader front too as both the indices ended lower by 3.8% and 2.9% respectively. On the benchmark front, the Nifty index ended lower by 3.4% at 8,823 levels.
The economic package largely focused on providing credit support and guarantees and somewhere failed to touch upon the immediate need to boost consumption. Further, the rising number of cases is another factor that is constantly haunting the investors. We’ve been maintaining our negative view on markets and expect more pain ahead. Meanwhile, the guidelines for lockdown 4.0 from state governments and earnings would be actively tracked by the investors.