Markets News

Global cues will dictate market trend this week

According to market analysts, Indian stock market is likely to remain volatile this week after witnessing two successive negative sessions.

The market will eye long term bond yield trends, crude oil prices and macroeconomic data this week amid volatility.

Last week, benchmark BSE Sensex gained 1,305.33 points or 2.6 per cent to end at 50,405.32.

Moreover, NSE Nifty reported a hike of 408.95 points or 2.8 per cent to finish at 14,938.1.

Investors will closely monitor global factors such bond yields, Fed Reserve policy and Joe Biden’s $1.9 trillion stimulus plan.

The major domestic events to watch out for would also be the release of macroeconomic numbers and IPO-run.

Further, movement of rupee against the US dollar and developments on the coronavirus front will remain the prime focus.

Positive GDP, PMI numbers and strong auto sales for February lifted market sentiment.

However, rising bond yields along with weak global cues brought back the bear run.

Meanwhile, 1.5 percent hike in U.S. 10 Year G-Sec yields on a closing basis will be negative for global equities.

The Dollar Index surged from 90 to 92 level, which is a downturn for emerging market currencies and also equities.

In fact, the Fed’s measures to maintain low-interest rate and high liquidity would provide relief to the market sentiments.

Moving forward, Nifty will touch minimum 14750/50000 or 14550/49300 levels this week as per reports.

On the higher side, reaching 15150/51200 and 15280/ 51600 would be major hurdles.

FMCG and auto companies will be major leaders to drive the market.

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