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Below are Views On Nifty opened lower and plunged 2% or ~300 points By Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

“Nifty opened lower and plunged 2% or ~300 points amid worries over rapidly rising Covid cases in India. Over the weekend the cases crossed 1lac mark in nation. Of this, ~80% cases are in Maharashtra where 2^nd lockdown has been put in place till Apr 30, though it’s not a complete lockdown. Market over the next few days would monitor as to how the situation pans out in Maharashtra and also in other states especially 8-10 other states where the covid cases is rising rampantly. Apart from this the Q4 numbers would start pouring in from mid-April with Infosys and Wipro being among the first ones to declare. We are expecting strong 4QFY21 numbers for the IT sector and expect robust FY22 outlook from the management despite cost pressures. Overall we believe IT and Metals to fare better in comparison to other sectors given the cost pressures faced during the Q4. Thus the month of April is likely to be highly volatile with Q4 earnings, rising covid cases and higher bond yields to determine the trend.”

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