Five big market stories to track in May-21

Foreign portfolio investors withdrew Rs.12,039 crore from Indian equities in April after infusing nearly $37 billion in FY21.

May 04, 2021 07:05 IST India Infoline News Service

After the uncertainty of Apr-21, here are 5 big stock market stories to track in May-21.
  1. Rising covid cases are a concern with over 400,000 afflictions daily. If lockdowns get extended, markets will be disappointed. The big challenge is to expand vaccinations, curb the spread of COVID and minimize economic impact. May will be an acid test.
  2. SEBI has given time till end of Jun-21 to declare quarterly and annual results. Only 20% of the BSE-500 companies have declared Mar-21 results and numbers have been better yoy but below the Dec-20 quarter. May will see the results trajectory being established.
  3. Foreign portfolio investors withdrew Rs.12,039 crore from Indian equities in April after infusing nearly $37 billion in FY21. May will decide whether this FPI outflow was a flash in the pan or whether FPIs are going light on India.
  4. Will there be another fiscal stimulus by the government? There are expectations that government may announce a smaller stimulus in May-21 to reduce the pain, apart from throwing some helicopter money. Rate cuts, of course, maybe ruled out for now.
  5. Finally, the big story in May will be inflation. The lockdown would have worsened supply chains and we could see inflation spiking once again in May. It would be a concern if it crosses the RBI comfort zone of 6%; since it is quite close to that already.

Related Story

Open Free Demat Account (Rs699)