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Dalal Street Week Ahead: Here are 10 key factors that will keep traders busy next week

Market participants should keep an eye on bond yields and the movement of USD/INR which could undergo some depreciation.

February 28, 2021 / 12:08 PM IST

The increasing bond yields and fear of rising inflation in the US made the investors and traders cautious globally. As a result, the Indian markets witnessed intense selling pressure, falling more than 3 percent in the week ended February 26. Also, the concerns over a second wave of COVID cases weakened the sentiment. But the rally post Budget FY22 and RBI's accommodative stance helped the market close with over 6 percent gains for the month of February.

The BSE Sensex tanked 1,789.77 points or 3.52 percent to 49,099.99, and the Nifty50 corrected 452.60 points or 3.02 percent to 14,529.15 during the week. With this, now both benchmark indices fell around 6 percent from record high levels.

But the broader markets outpaced frontline indices last week as the Nifty Midcap 100 index and Smallcap 100 index gained 0.65 percent and 0.87 percent respectively.

On Monday, the market will first react to encouraging Q3 GDP data, but overall, experts feel bears may continue to have the upper hand along with volatility at Dalal Street given the apprehensions over rising bond yields and FII outflow, though likely fresh stimulus in the US can act as a support in between.