Weekly market view by Sudhakar Shanbhag, CIO, Kotak Life Insurance

The Indian equity markets have been buoyant over the last couple of weeks. This market rally has come as a surprise to all when nobody was expecting it. Indian markets had been laggards in the emerging market basket and are probably catching up and we have seen almost a 33% rally from the low we saw in March 2020. Gradual release of lockdown measures would also have played its part.

There is however a complete dichotomy between the markets and the Economy. The coronavirus situation is also not completely under control. While the current market rally has seen momentum we have to be watchful about how the coronavirus comes under control over the next few weeks and months as also how the economy responds to the same including the measures taken by the government and RBI.

The weekend data on Nonfarm payroll in the US was a positive surprise as well as the unemployment rate being lower than expected has seen a sharp rally in US market by about 3%.