Oil price to dictate market trend this week: Analysts

BusinessOil price to dictate market trend this week: Analysts

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Oil price to dictate market trend this week: Analysts

New Delhi: Besides, investments by FPIs (Foreign Portfolio Investors) as well as domestic investors, movement of rupee against the US dollar and developments on the coronavirus front are likely to be closely watched for cues.

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 FPIs (Foreign Portfolio Investors) as well as domestic investors, movement of rupee against the US dollar and developments on the coronavirus front are likely to be closely watched for cues.

“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 level, which is seen as a negative for emerging market currencies and also equities.

“In the absence of any major domestic trigger Indian markets could take a cue from global developments and the US markets,” said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.

The tone of the market seems to be on the downside, for now, Oza added.

On March 5, benchmark BSE Sensex tumbled over 440 points and the NSE Nifty cracked below the psychological 15,000-level amid relentless sell-off in global equities as US bond market turmoil continued to rattle investors.

The 30-share Sensex plummeted by 440.76 points or 0.87 per cent to close at 50,405.32, continuing its falling trend for the second day on Friday due to concerns over bond yields. The NSE barometer Nifty ended lower by 142.65 points or 0.95 per cent at 14,938.10.

“In the coming week, the market will be mainly focusing on the expectations on whether the Fed, in its upcoming meeting, will maintain its accommodative stance in a rising bond yield market. Additionally, Fed’s measures to maintain low-interest rate and high liquidity will also provide relief to the market sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.

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