Markets have again started reacting negatively to the recent spike in coronavirus cases, though this reaction has not been so sharp, Zee Business Managing Editor Anil Singhvi said. The fact that markets have as started reacting to the corona trend is a big development, Singhvi said. The markets had earlier settled down for a brief period, despite new cases being reported every day.
The Market Guru is advising investors to remain cautious at higher levels and importantly, is against buying at any level. Market movements – positive or negative – will be dictated by coronavirus situation. This however, does not suggest that markets have already made a top level or will take a U-turn from existing levels.
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Singhvi further said that there is now a question mark over the recent rallies in the US markets, riding on the back of liquidity. It will be important to see the trends in the US markets over the next 2-3 sessions amid the rising number of coronavirus cases in the country. This will decide future course of global markets, including in India, he added
Significantly, developments related to coronavirus are not positive with US reporting over 40000 cases daily. Around 1.3 lakh cases have been reported in the last there days. Till now 1.24 lakh people have succumbed to the virus in the US. Whatever is happening in the US is extremely discomforting.
The silence of the US President Donald Trump is also not helping as it is unknown how seriously the administration is taking this situation and if we can see another lockdown being clamped there.
The worst fears expressed by the World Health Organisation (WHO) are coming true as the number of coronavirus cases are rising as the lockdown is being relaxed. This is not just limited to the US but elsewhere too, including India.
The daily reporting of new cases does not come as a surprise, but the numbers are pointing to an alarming trend. While, people may have different views on the daily numbers and how they see it, the US administration should come clean on how it sees this situation.
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It will be problematic if another round of lockdown is imposed, the Market Guru concluded.