How will Indian markets react now that Covid-19 impact has stabilised in US, but oil has not? Anil Singhvi explains

With the Coronavirus impact in the US stabilising to an extent, Wall Street jumped yesterday thereby fueling global sentiments. However, crude oil price is still in the plunging mode and it may well damage the market rally. Assessing the current market situation, Zee Business Managing Editor Anil Singhvi said that death toll due to Coronavirus in the US has gone down for the second consecutive day, which has lifted the morale of Wall Street investors. However, he maintained that oil price has hit its nadir and crude being an asset commodity should not remain below a certain level for a long time.

Speaking on the Wall Street rally, Anil Singhvi said, "Number of death cases in the US have gone down for second consecutive day. It has fueled the morale of Wall Street investors and hence we witnessed rally in the Wall Street indices. However, at Indian stock market, same can't be said as Coronavirus has still not topped out and hence the COVID-19 infection cases in India are still rising but they are under control. If both in India and US, Coronavirus impact tops out, then we can witness some positive impact at the bourses as well."

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However, Anil Singhvi warned about the sliding crude oil prices citing, "Crude oil should also needs to recover from the Coronavirus impact as it has hit its nadir by going below $0 per barrel in the US. Such an asset commodity like crude should not remain below a certain level for a longer time period."

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Singhvi said that once the Coronavirus impact tops out in other nations as well, then we can expect crude oil to pick up rally as demand for the asset commodity will pick up after the lockdown lifting.