NEW DELHI: Indian stock market is likely to remain volatile this week after witnessing two successive negative sessions (Thursday and Friday) but still managed to gain on a weekly basis. Last week, benchmark BSE Sensex added 1,305.33 points or 2.6 per cent to end at 50,405.32 and NSE Nifty rose 408.95 points or 2.8 per cent to finish at 14,938.1.
Positive GDP, PMI numbers and strong auto sales for February lifted market sentiment. However, rising bond yields and weak global cues brought back the bear run. In the coming week, experts say investors would be keeping a close eye on 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.
“We expect volatility to remain high this week. Participants will be closely eyeing macroeconomic data viz IIP, CPI and WPI inflation. Needless to say, the US bond yields will remain in focus as any further uptick may trigger a decline in the equity markets again,” said Ajit Mishra, VP Research, Religare Broking.
According to Vinod Nair, Head of Research at Geojit Financial Services, the Fed’s measures to maintain low-interest rate and high liquidity would provide relief to the market sentiments.
On Friday, BSE Sensex nosedived 1,939 points or 3.8 per cent due to spike in US bond yield amid fear over inflation. “In the short term until the market is not breaking 15280 levels, our bias should be on the downside. We could see Nifty/Sensex touching minimum 14750/50000 or 14550/49300 levels in the coming week. On the higher side, 15150/51200 and 15280/ 51600 would be major hurdles. The focus should be on FMCG and auto companies,” said Shrikant Chouhan, EVP, Equity Technical Research at Kotak Securities.