Indian markets had a very good week, with the benchmark indices gaining as much as 3 per cent in trade. As we go into the next week, there could be immense volatility. Here are 3 factors to watch when trading resumes next week.
1. Concerns over US President Donald Trump's health
US President Donald Trump's condition has improved since receiving care at Walter Reed Medical Center after testing positive for the coronavirus, Trump's physician, Dr. Sean Conley, said on Saturday.
Concerns surrounding the President's health would be keep markets around the globe volatile.
2. Supreme Court hearing on waiver of interest on interest
On October 5, the Supreme Court is expected to deliver a verdict on the interest being charged by banks on loan moratorium. The government is expected to tell the court that it will provide interest relief to small borrowers with loan amounts of Rs 2 crore.
One will have to wait and see the finer details of the Judgement, should the verdict be delivered tomorrow. An adverse ruling for banks could see a sharp drop in the stock prices of banks.
3. Coronavirus infections
Markets would also closely observe the infections and the pace of infections of Covid 19 infections. Any sharp rise in the same, may see some selling pressure in stocks.
India reported more than 65 lakh confirmed infections with over 1 lakh deaths. However, low mortality and good recoveries have been a big positive for the country.