Geopolitical developments, crude oil major driving factors for market movement this week: Analysts

This week's trading activity in the stock market will be influenced by developments surrounding the Strait of Hormuz, the US-Iran standoff, and crude oil prices, analysts have said. As the quarterly earnings season has concluded, investors will also monitor the trading activity of foreign institutional investors, experts added. With the earnings season in the rearview mirror, the upcoming week will be relatively data-light, with traders focusing on global monetary policy expectations, crude oil prices, and geopolitical developments, Ajit Mishra, SVP of Research at Religare Broking Ltd, stated.

The Federal Reserve's minutes, known as the FOMC minutes, will be closely scrutinized for insights into the Fed's policy outlook, with any hint of a more hawkish stance potentially impacting emerging-market flows and amplifying volatility in Indian equities, Ponmudi R, CEO of Enrich Money, added. During the forthcoming week, investor interest will predominantly hinge on developments at the Strait of Hormuz and the broader US-Iran standoff, as well as the release of the FOMC minutes on August 19, according to Ponmudi.

Following a decline of 489.92 points, or 0.62 percent, in the BSE Sensex and a drop of 204.65 points, or 0.83 percent, in the NSE Nifty during the previous week, Indian equity markets ended lower for the week, marking a break from their two-week winning streak, Ponmudi also noted. Pabitro Mukherjee, Deputy Vice President of Research at Bajaj Broking, emphasized that this week, investors will closely watch crude oil price movements and the ongoing US-Iran geopolitical tensions.

Additionally, Vinod Nair, Head of Research at Geojit Investments Limited, highlighted that investors will keep a close eye on crude oil prices, geopolitical developments, FOMC minutes, and Chinese economic data for further cues on global growth and the Fed's policy outlook.