Inflation data, crude oil and bond yields to steer markets next week
Crude above $100 a barrel, Trump's Russia diesel claim and US bond yields above 5 per cent will shape the market after a weekly gain for Sensex and Nifty.
Images are not validated/verified
The Indian stock market has been through heavy turbulence in recent days. The rupee is weakening against the dollar and the market is unable to find its footing amid global uncertainty. Even so, the coming week is seen as important for the market, because three major factors will decide its direction.
Next week, key US data such as inflation, home sales and retail sales will be released. India will also put out its retail and wholesale inflation, unemployment, trade balance and foreign exchange reserves figures. These will certainly affect the market. Crude oil prices, bond yields, inflation numbers and other international and domestic economic data will be the main drivers of market movement.
The first factor is the price of crude oil, which will play a big role in the market next week. Crude is currently trading above $100. Experts say the US decision to buy diesel from Russia will ease global tension, and crude prices could soften as a result.
The second key issue is a statement by Trump. In a post on his social platform "Truth Social", Trump wrote, "I had a very successful conversation with Russian President Vladimir Putin." He went on to write that it was agreed that Russia would immediately supply more than 300,000 tonnes of diesel to the US and world markets, followed by 500,000 tonnes in November and, soon after, 1,000,000 tonnes.
The third factor is US bond yields. Investors will also watch US bond yields next week, which have stayed consistently above 5 per cent.
Now to last week. It was a gainful week for the Indian stock market. The Sensex rose 562.63 points, or 0.78 per cent, to 72,472.33. The Nifty rose 98.50 points, or 0.44 per cent, to 22,520.45. This is the first time in eight weeks that the market has closed with a weekly gain.
Among indices, BSE Telecom closed 3.72 per cent higher. BSE FMCG gained 2.43 per cent, BSE PSU Bank 2.31 per cent, BSE Financial Services 1.03 per cent and BSE IT 0.76 per cent.
On the other side, BSE Realty closed 4.19 per cent lower. BSE Metal fell 4.18 per cent, BSE Utilities 2.48 per cent, BSE Commodities 2.46 per cent and BSE Power 2.22 per cent.
Disclaimer: Investment in the stock market is subject to market risk, so consult a certified investment adviser before investing.
