US bond yields, Covid-19 cases, FII inflows among key factors that may decide market trend next week

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Trend in global stock markets, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored.

The key thing to watch out for in the near future would be the US bond yields because any rise in yields can take out the FII money from developing countries like India to western markets and could also be a risk for emerging markets currencies.

The Dollar Index, which measures the U.S. currency against a basket of six peers, will also be closely watched.

Key indices posted losses in the week ended Friday, 19 March 2021 amid high volatility. Resurgence of COVID-19 cases in various part of the country made investors jittery. Spike in global bond yields also soured sentiment. The Sensex dropped below the key 50,000 mark.

In the week ended on Friday, 19 March 2021, the Sensex dropped 933.84 points or 1.84% to settle at 49,858.24. The Nifty 50 index lost 286.95 points or 1.91% to settle at 14,744.

Global cues will continue to be in focus. Updates related to COVID-19 will be closely watched. Also on the radar will be news on Covid vaccine development. From here on the pace of the improvement of economic indicators along with outcomes of a possible vaccine or cure for COVID-19 would determine the movement of the market.

India reported 2,71,282 active cases of COVID-19 infection and 1,59,370 deaths while 1,10,83,679 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India. Total COVID-19 confirmed cases worldwide stood at 12,18,04,270 with 26,91,300 deaths.

China will announce Loan Prime Rate for 1 year and 5 years on 22 March 2021.

The United States Durable Goods Orders for February will be declared on 24 March 2021.

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