Bond yields and crude oil prices should also be noted
Experts on the market this week
MUMBAI: U.S. bond yields, domestic data and crude oil prices will determine stock market movements this week, market experts said. They suggest that investors be vigilant about new decisions. Because as the markets came under severe pressure last week, the indices fell 3%. The Sensex fell 1,940 points in a single day on Friday. Seeing the fall of May 2020, the market has collapsed to that level again now. On February 26, the domestic market as well as all stock markets around the world suffered heavy losses.
The Sensex closed at 49,099 and the Nifty closed at 14,529. As a result, the market value of BSE-listed companies fell by Rs 6 lakh crore to Rs 200.81 lakh crore. The U.S. bond return movement is important for the global market as foreign institutional investors (FIIs) begin to pull away from developed markets as bond yields rise. The currency is also weak in the emerging market. Inflation is also on the rise in the wake of rising commodity prices. This has become a more negative factor for the market.
Upcoming auto sales
Vehicle sales figures for February will be released on Monday. Industry experts expect strong sales in the passenger vehicles and tractor segment. Two-wheeler sales are expected to decline. In such a situation investors will not be all eyes on auto shares. These include Tata Motors, Maruti Suzuki, Eicher Motors, Bajaj Auto, Ashok Leyland, Mahindra & Mahindra, Hero MotoCorp, TVS Motor and Escort.
The February financial figures are due earlier this week. IHS Market Service will release Purchasing Manager Index (PMI) data on Wednesday. The February figures are expected to be strong as expected. Because of sales, new export orders increased. In January, PMI manufacturing stood at 57.7 and service PMI at 52.8.
First IPO this month
The IPOs will start from March 3. The MTAR Technologies IPO is coming up this week. Its deadline is March 3 to March 5. The company aims to raise Rs 597 crore. For this, the price band has been fixed at Rs 574 to Rs 575 per share. The company is issuing about Rs 124 crore shares for public issue and Rs 473 crore shares through offer for sale (OFS). Promoters and investors sell their stake in OFS.
Investors are closely watching bond yields, as well as US-Iranian and domestic economic data, said Siddhilt Khemka, head of retail research. The market is expected to continue to decline due to weak foreign signals. Corona cases have started to rise again in many states of the country. Kotak Securities spokesperson Rasmik Ojha said Indian stock market movements are dependent on inflation and rising bond yields. Stable currency, strong economic growth, said it could benefit from an increase in revenue. According to Angel Broking Chief Analyst (Technical and Derivatives) Samit Chavan, the market has been trading at a profit for a long time, so there may be bookings for profits for the medium term. However it is said to be a good opportunity for the long term.