This week in a nutshell (May 10th to May 14th)Aniket Khanolkar
NIFTY opened the week on 10th May at 14,928 and closed on 14th May at 14,678. It made a weekly loss of 2%. The index is trading above its 100DMA of 14,576 which might act as a support. On the upside 50DMA of 14,724 might act as a resistance. The index might trade range-bound before making a strong move on either side.
- Moody’s Investor services reduced its FY22E economic growth forecast for India to 9.3% from 13.7% estimated earlier. Investment banks like credit Suisse have also lowered India’s real GDP forecast as mentioned in the previous note.
- US drugmaker Eli Lilly and Co has issued royalty-free, non-exclusive voluntary licenses to produce its Baricitnib drug to Cipla, Lupin, and Sun Pharma. The drug is used with a combination of Remdesivir for the treatment of Covid-19. This will ensure improvement in the local treatment options available to the infected patients in India.
- The Federation of Automobile Dealers Association (FADA) expects sales to return to their peak levels of March 2019 only by FY23E. FADA said registrations of new vehicles, including cars, SUVs, motorbikes, and trucks, for April 21 were 28% lower than March 21.
- During this week, Oil prices were lifted by fears of a gasoline (petrol) shortage after a cyber-attack caused an outage at the largest US fuel pipeline system. The fuel pipeline in the U.S. restarted now, but it will take several days for the supply chain to return to normal.
- The foreign institutional investors (FII) Sold Rs 36,199 mn worth Indian equity shares last week. Domestic institutional investors (DII) were also net sellers during this week with Rs 1,817mn of outflow.
Things to watch out for this week
- The 4QFY21 result season will continue in the next week as well. The commentary from companies’ management will be key to access the medium/long-term outlook on markets. The current situation is dynamic and changing very rapidly.
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