Stock markets will focus on long term bond yield trends, crude oil prices and macroeconomic data this week as investors look for cues amid volatility, according to analysts.Besides, investments by FPI
NEW DELHI: After a volatile five sessions, the benchmark equity markets ended the week with gains of about 3 per cent as D-Street danced to global tunes, especially given the fluctuations in US bond yields.
This was the first positive week for Nifty and Sesnex after two straight weeks of losses, but analysts believe there are more reasons for the market to fall than rise at least in the near term as investors will look at the trend of bond yields abroad to assume higher risk.
“The US 10-year G-Sec yields have surpassed 1.5 per cent on a closing basis, which is somewhat negative for global equities. The dollar index has also moved up from 90 to ~92 levels, which is seen as negative for emerging market currencies and also equities. The tone of the market seems to be on the downside for now,” said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.
Gap up opening seen; but FPIs hold the key
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Investors would closely track bond yields, geopolitical tensions and inflation data for further market direction
Global and Asia-Pacific markets point to a strong opening for Indian markets. SGX Nifty, which is ruling at 14,751, points to at least a 200-point gap-up opening for Nifty. The Nifty March futures on Friday crashed almost 4 per cent to close at 14,578.
Asia Pacific markets too opened with sharp gains. Key markets such as Japan, China, Australia and Hong Kong are up between 1 and 2 per cent.
Foreign fund flows will continue to dictate the market direction, said market experts. In one of the biggest pull-outs in recent times, FPIs on Friday (net) sold shares worth ₹8,295 crore. The market crashed almost 4 per cent.
New Delhi, Feb 28: From long term bond yield trends to crude oil price movements to macroeconomic data takeaways, a slew of factors will drive domestic