Markets to track Covid-19 updates for further cues: Analysts

New Delhi, Apr 5 () Equity market sentiment will continue to be driven by the trend in coronavirus cases globally as well as in India, analysts said, adding that indices may see high volatility in the holiday-shortened week ahead.

Markets will be closed on Monday for 'Mahavir Jayanti' and on Friday for 'Good Friday'.

"Going ahead, market would continue to be highly volatile and would track global markets along with the trend in coronavirus cases globally and locally.

"However, it has corrected significantly, providing significant investment opportunity for the long term investors," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.

The number of Covid-19 cases in the country has neared the 3,000-mark, with the death toll rising to 68.

The deadly virus has infected over a million people across the world, and killed more than 50,000.

Fitch Ratings on Friday warned that India's 2020-21 GDP growth may stand at 2 per cent -- the slowest since the economy was liberalised 30 years back.

It added that the global economy will fall into a deep recession in 2020, with growth print contracting by 1.9 per cent, pulled down by larger contractions in the US and the Euro zone.

Concerns over a looming recession have kept investors on the edge. During the last week, the Sensex lost 2,224.64 points or 7.46 per cent.

"The market trend will be driven by any signs of the virus infections peaking out in the worst affected countries. India's efforts to keep the infection under control have seen some success and some hurdles, and any news with regards to the lockdown being withdrawn, may be met with some positivity," Vinod Nair, Head of Research, Geojit Financial Services, said.

On the macroeconomic front, PMI data for the services sector is due on Monday.

"We believe the market trend will continue to remain challenging until the fresh cases start to decline. Though the defensive pack is playing saviour, the damage in other sectors is more severe and that would keep the markets under pressure ahead also," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Market participants would also track movement in Brent crude, rupee-dollar trend and investment pattern of overseas investors, analysts said.

"Investors remain concerned on the accelerated rise in infections across the world and potential economic fallout of the same," according to Sanjeev Zarbade, VP PCG Research, Kotak Securities. SUM SHW ABMABM