Geopolitics, crude oil prices likely to drive stock market movements
Last week, the BSE benchmark Sensex declined 468.42 points, or 0.60 per cent, and the NSE Nifty dipped 114 points, or 0.46 per cent
Indian stock markets are poised to be influenced by several global factors this week, according to market analysts. The primary concerns include crude oil prices, tensions between the US and Iran, and signals from the US Federal Reserve. Brent crude oil prices hovering above $90 per barrel pose a significant risk for India, while geopolitical uncertainty surrounding the Strait of Hormuz could contribute to market volatility.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, emphasizes that investors will closely monitor the outcomes of the Jackson Hole symposium for insights into potential future US interest rate adjustments. Additionally, US GDP estimates, durable goods orders, and consumer confidence data will provide further clues about the health of the world's largest economy and the Federal Reserve's policy stance.
Ponmudi R, CEO of Enrich Money, highlights that global investors will focus on three key elements: the Federal Reserve's policy trajectory, Nvidia's quarterly earnings, and the ongoing US-Iran conflict. Fed Chair Kevin Warsh's address at the Jackson Hole symposium is expected to receive significant attention amidst concerns about volatile US Treasury yields, persistent inflation, and signs of weakness in the labor market.
The Indian economy is also expected to grow by 7% in Q1 FY27, which could help offset global risks and bolster the economic outlook. However, crude oil prices remain a significant external risk, as the 60-day US-Iran agreement comes to an end without a lasting resolution. This uncertainty has heightened concerns over the Strait of Hormuz and regional energy supplies.
Foreign portfolio investors have increased their investments in Indian equities, contributing ₹23,544 crore so far in August. Despite this positive trend, benchmark indices like the BSE Sensex and NSE Nifty ended lower last week. The Sensex dropped by 468.42 points, or 0.60%, while the Nifty declined by 114 points, or 0.46%. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, anticipates a short-term consolidation phase for Indian markets following two weeks of correction, with limited near-term recovery prospects.
Investors will be particularly attentive to developments in crude oil prices and geopolitical events when determining the market's next direction.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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