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'Markets this week to be guided by Covid, macro data, earnings'

Markets this week to be guided by Covid, macro data, earnings
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New Delhi: Market movement this week will be influenced by updates on the COVID-19 front, macroeconomic data announcement, quarterly earnings and global trends, said analysts.

They also added that state election results are unlikely to have any major impact on the markets and the major determining factor will be the rising COVID-19 cases and how governments (both central and states) are going to address this health crisis.

The ruling Trinamool Congress was ahead of the BJP in the keenly watched state of West Bengal, while the saffron party-led NDA was leading in Assam and the DMK in Tamil Nadu, according to the latest trends for Assembly polls.

In Kerala, the ruling LDF is leading in 88 of the 140 assembly constituencies while the opposition Congress-headed UDF was ahead in 50 segments.

Geojit Financial Services Chief Investment Strategist V K Vijayakumar said, "The election results are unlikely to have any impact on the markets. The news value won't last more than a few hours. The major determining factor will be the rising COVID-19 cases and how governments (both central and states) are going to address this tragic health crisis."

He added that if the rising COVID-19 case load leads to a major catastrophe and another country-wide lockdown is declared, the market would be hugely impacted. "So, watch out for the COVID-19 counts more than the vote counts."

The counting of votes for the Assembly polls in four states and a Union Territory is being taken up at a time when the country is grappling with a raging COVID-19 pandemic. Religare Broking Vice-President (Research) Ajit Mishra said, "We expect volatility to remain high this week, too. First, participants will react to Reliance Industries results which came in after market hours on Friday. Election results of the 5 states will also be the focus."

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