Weekly Commentary -1-May-2020

Last week: NIFTY50 7.7%, Midcap 6.4%, Smallcap 3.0%, Sectoral: METAL 13.1%, IT 10.1%, PHARMA -2.0%, FMCG 0.1%

Market Updates:

• Auto sales to remain subdued even post lockdown: Crisil
  Crisil Research reports that auto sales are likely to remain subdued as consumers continue to defer auto purchase due to the fear of coronavirus infection for an extended period post lockdown. It projected that half of passengers vehicle sales and a third of two-wheeler volume are at risk due to the coronavirus-induced pandemic.
• RBI unveils Rs 50,000 crore special liquidity facility for mutual funds
  With an aim to ease liquidity pressures on mutual funds (MFs), RBI has decided to open a special liquidity facility for mutual funds (SLF-MF) of Rs 50,000 crore. The central bank also stated that it remains vigilant and will take whatever steps are necessary to mitigate the economic impact of COVID-19 and preserve financial stability.
• CII recommends measures to revive growth of steel industry
  CII has recommended to government measures to revive growth for the survival and sustainability of Indian steel industry, hit hard by nationwide lockdown due to the coronavirus pandemic. In a representation to the government, CII has raised various issues the steel sector is facing and recommended steps to be taken to address these challenges.