Market forecast – What to expect this week?

3 Apr 2023 , 02:29 PM

Indian equity markets may see some turbulence this week. The decision of OPEC + to cut oil output by 1 million barrels per day is a negative one for Indian equity markets. It will put upward pressure on oil prices. RBI is going to announce its interest rate hike decision on April 6^th. That is also going to have some impact on equity markets. 

US consumer price inflation in February stood at 0.3% on month-on-month basis. This is lower than expectations. On a year-on-year basis it stood at 4.6% in the month. Prices of Credit default swaps of Deutsche Bank have come down somewhat after rising sharply in the past week. Higher prices of credit default swaps mean that the risk of default by the bank on its obligations has increased. Decline in prices of credit default swaps means that risk of default is going down.  Stock price of the bank has therefore recovered somewhat. At 2: 24 p.m. Indian time, its stock was up by 2.52%. Stocks of banks in India may also see some gains as concerns regarding banking crisis have alleviated somewhat for the time being. Meanwhile, Federal Deposit Insurance Corporation has said that its insurance fund is likely to incur a cost of $20 billion for saving Silicon Valley Bank.

Investors will continue to maintain a short-term perspective this week too. This means that there will be short-term buying and selling to realize trading gains. Long term scenario still looks unclear.