The Nifty has had good last six trading sessions, climbing back to 15,000, a monthly high, barring April 30.
We bounced from the lower base due to a drop in COVID-19 cases in key areas like Mumbai, triggering hope that India’s infections were reaching its peak.
But on April 30, selling was seen at the top end of the channel and the narrow range still persists.
A selloff in the banking sector was in following weak numbers announced by some mid banks and NBFCs due to weakening NPAs and higher provisioning.
On a long-term basis, India is among the best performer but in the last three months, we have lost the gains.
The US government’s 10-year treaury bill yield is at 1.65 percent, better than higher risk dividend yield of S&P500 index at 1.37 percent.
Banks have thrown up a mixed set of numbers, with most meeting expectations but outlook for the quality of assets has declined.
Most of the results will be released in May and are expected to be good, which can help the market regain lost ground.