Derivatives expiry, Covid updates, Q4 earnings among key factors that may guide stock market next week

The benchmark equity indices BSE Sensex and NSE Nifty are likely to be volatile in the forthcoming week as traders will roll over positions in the F&O segment from the near month May series to June series. The May 2021 F&O contracts will expire on May 27.

Macroeconomic data, earnings, Covid updates and global cues are also some of the key factors which will give direction to the stock market in the coming week.

On the coronavirus front, investors would continuously watch out government’s course of action along with progress on the vaccination drive. Various states have imposed or extended lockdowns for another few weeks to control the rise in cases that could impact the economy.

Besides, the movement of the rupee against the dollar and crude oil prices, the trend in global stock markets will dictate the 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 US currency against a basket of six peers, will also be closely watched.

India Inc will continue to report its March quarter earnings. Grasim Industries will declare its Q4 result on 24 May 2021. Sun Pharmaceutical and Eicher Motors will announce their Q4 result on 27 May 2021.

Overseas, China’s industrial profits data for April will be announced on May 27 while the United States Durable Goods Orders for April will also be declared on the same day.

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