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Week in 5 charts: Inflation data, coronavirus kept market volatile; Rupee flat

S&P retained India’s rating with a stable outlook and expects a gradual recovery in the economy with GDP growth reaching 7 percent in two years.

February 15, 2020 / 10:12 AM IST

Benchmark indices ended flat in the week ended February 14 amid domestic data, the final round of corporate earnings and mixed global markets due to ongoing issue of coronavirus (COVID-19) in China.

The World Health Organisation (WHO) on February 11 officially named the disease caused by the novel coronavirus as COVID-19.

On February 11 and 12, the Indian market ended on a positive note on the back of positive global cues after China reported less infected people due to COVID-19. However, selling in the next two sessions pulled the Nifty below 12,200 level as the number of affected people increased, which dampened investor sentiment.

"Markets are facing headwinds on both the domestic front and global front, however, the benchmark still looks comparatively stable. In the absence of any major local event, we feel global cues will largely dictate the market trend," said Ajit Mishra, VP - Research, Religare Broking.

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COVID-19 Vaccine

Frequently Asked Questions

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A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

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There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

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Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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India's retail inflation rate in January stood at 7.59 percent against 7.35 percent seen in December 2019. However, the January core inflation was at 4.8 percent versus 3.7 percent in December.

Index of industrial production (IIP) contracted in December at 0.3 percent versus 1.8 percent a month ago.

The wholesale price inflation (WPI) for January stood at 3.1 percent against 2.59 percent during December and 2.76 percent in January 2019.

However, S&P retained India’s rating with a stable outlook and expects a gradual recovery in the economy with GDP growth reaching 7 percent in two years.

A mixed trend was seen in the global markets amid uncertainties about COVID-19. The death toll in China has climbed to 1,523 with 143 new fatalities, while the confirmed cases jumped to over 66,000.

The Sensex was up 115.89 points (0.28 percent) to end at 41,257.74 in the past week, the Nifty was up 15.15 points (0.12 percent) to end at 12,113.5.

Domestic Institutional Investors (DIIs) sold equities worth of Rs 792.91 crore, while foreign institutional investors (FIIs) bought little over Rs 11 crore.

For the week, the Rupee ended marginally higher at 71.36 on February 14 against February 7 closing of 71.40.

The BSE large-cap was down 0.20 percent, BSE small-cap index fell 1 percent and the BSE mid-cap index shed 1.53 percent in the past week.

midcap

smallcap

largecap

On the BSE, Reliance Industries (RIL) added the most in terms of market value, followed by HUL and TCS. On the other hand, HDFC Bank lost the most in terms of market value.

m-cap

The Nifty PSU Bank index underperformed the sectoral indices with a loss of 4.4 percent during the week.

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Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments.
Moneycontrol News
first published: Feb 15, 2020 10:11 am

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