The Week Ahead May 31st – June 6: Lockdown 5.0 / Unlock Economy 1.0
Last week was very curious as the world is moving forward to return to normalcy as soon as possible. With new cases increasing in different parts of the world, many parts are returning to normalcy with no fresh cases. Corona has with no doubt has changed our lives very much that we changed the way we used to look at the things.
Lockdown 5.0 / Unlock Economy 1.0
Looking at the present situation in India, we are at the end of lockdown 4.0 and it was on May 30 new guidelines were announced which completely focused on resuming the economic operation across the country at the same time restricting few things in the containment zones. This is required to balance between resuming the country and at the same time controlling the spread of the virus. A list of containment zones lead by Mumbai, Chennai and others is published by Ministry of home affairs where there is a certain restriction on gathering, malls and other things to contain covid19.
Check the complete details of guidelines issued by MHA on this link
Honorable PM Modi Letters to fellow citizens of Country
On Saturday Morning may 30, Honorable PM has penned a letter to the citizens of the country on the occasion of 1 year of Modi 2.0 government formation. There are highlights about the achievements of the government over the past and how it has progressed the country towards becoming self-reliant and also highlighting how India is facing the present pandemic situation. Check the complete letter from PM Modi on his twitter handle.
Locusts Problem in India
On one side India is fighting the Covid19 and another side Locust problem is worrying many farmers across different states of the country. The problem is very worrying in states such as Rajasthan, Maharashtra and other central states. Read our complete article on Locust problem in India and reasons why this arose this year.
last week many airlines have resumed the operations and in many states, many airports also started to operate according to the local state government norms. And also a passenger who fled from Chennai to Coimbatore is tested positive and all the passengers of the flight are asked to home quarantine.
US Exiting WHO – Trump reiterating his stand on WHO
Trump has reiterated his stand against China, blaming it as the main reason for the spread of coronavirus. Mr Trump on may 29 has announced that he is terminating the relation with WHO blaming it as ineffective in dealing with the global pandemic which resulted in more than 100000+ deaths in the US. He said that the funds which are to be sent to WHO will be now redirected to other health projects across the world. Trump over the past few weeks is blaming china and WHO for the present pandemic, and now he has taken the fight forward by announcing his decision to exit from WHO. He most of the times claimed that WHO is working on the interests of China.
India Nepal Relations
The bilateral relations between India and Nepal are at its low as Nepal PM released recently a new map of Nepal in which three of the Indian territories were marked as Nepal area. Though the new map was not approved by the Nepal parliament, the step taken by the PM to claim authority over the Indian land made India make a second thought about the relation of Nepal. This also led to an unproven doubt that Nepal is acting on the guidance f china with which India has already damaging diplomatic relations. These borders disputes between these countries are making the situation across the LOC tensed and authorities are keeping a close watch to face any situation that may arise. Nepal PM even went to announce that India is responsible for the covid19 cases in Nepal. Read his full comments here.
India: Markets in the Week Ahead.
Start markets have started showing some positive movement over the past week. There is an indication that bulls are back to the game. Nifty50 and BSE Sensex rose almost 6% over the past week. With the complete relaxation in many industries, it is expected that the market moves with a positive outlook.
When it comes to sector-specific outlook, the week seems uncertain, as the results from most of the companies are expected to fall at the same time there is a tension between china and US relations. Which affect the markets sentiments largely.
Thought the last week we have seen a positive outlook, the next week seems to be uncertain, the main reason is that the extension of lockdown in containment ones where most of the business operates. Hence there is considerable volatility that can be expected in the D-street. But in the end, there is an indication that slowly economies have starting to resume. But there is also a constant increase in the number of cases in India. On Sunday morning there are almost 8500+ positive cases in the last 24 hours.
The market will first react to the GDP estimates that are published last week. The revised estimates for the last 3 quarters are downgraded, and hence it is advised that investors be cautious with the expected volatility.
Things that dominate the market this week are
- Lockdown 5.0 in containment zones and Unlock 1 in other zones.
- Almost 70+ companies will be declaring quarterly results. Keep a watch on the results.
- Us – China Relations will dominate the market.
These are some on the important things that are happening around the world We will come with another one soon. Thanks
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