Market Watch: Amid fresh Covid curbs, should you avoid cyclical stocks? | The Economic Times Podcast

Market Watch: Amid fresh Covid curbs, should you avoid cyclical stocks? | The Economic Times Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul P.M. and here are the top headlines at this hour.

Sensex falls nearly 900 points as Maharashtra imposes new Covid curbs
Nomura says second Covid wave hurting activity
ICRA warns of sharp jump in bad loans in FY22
Q1 residential property sales grow 44%, launches rise by 38%
Bharat Diamond Bourse to shut until further notice
March manufacturing activity hits 7-month low

Let us take a quick glance at what happened on the Dalal Street today.

The imposition of stricter restrictions in Maharashtra due to rising Covid-19 cases sparked a sell-off on Dalal Street. The fear was palpable among investors as the volatility gauge, India VIX, jumped 6 per cent.

The losses in the market were in contradiction to the rest of the world where stocks rallied on expectations of strong global growth and the new infrastructure spending plan of the US.

Shares of financial services companies and several economy-linked stocks such as Larsen & Toubro took the biggest beating. Nifty Bank, Nifty Realty and Nifty Auto were among the biggest sectoral losers.

Among Sensex stocks, Bajaj Finance, IndusInd Bank, SBI, M&M and Bajaj Auto fell 4-6 per cent. IT stocks emerged as the winners of the day with Nifty IT rising 2 per cent.

We spoke to A.K. Prabhakar of IDBI Capital Markets to share his views on the market.

Welcome to the show, sir.

In light of fresh lockdowns that have been announced, should investors try to get out of cyclical stocks in the market?

How big a concern is the current macroeconomic backdrop and how should investors tread from here?

We also caught up with Aditya Agarwala of YES Securities to decode the technical charts for you.

What’s the maximum downside for Nifty Bank? Can we see a rebound on Tuesday?

How should traders position themselves in this market?

Asian markets ended up to 2 per cent higher for the day. European markets were largely positive in the first few hours of trade. US stock futures were hinting at a positive start to US equities later in the day.

That’s all for now. Do check out for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening! Bye bye!

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