Crude Oil and FII Flows to Decide Fate of Indian Equities This Week

Indian equities are facing another challenging week as investors weigh various factors that could impact sentiment. The recent seven-week decline in markets has left investors cautious, and they will be tracking key indicators such as crude oil prices, global bond yields, foreign fund flows, and developments in the Middle East.

The US-Iran conflict is also a concern, with Iran proposing a seven-day framework to restore normal shipping through the Strait of Hormuz in return for sanctions relief and broader ceasefire measures. This could lead to stabilisation or intensification of energy markets depending on the outcome.

Global bond yields will remain under scrutiny after the US Federal Reserve's latest policy decision, with higher yields potentially weakening appetite for emerging-market equities and encouraging capital outflows. On the other hand, easing yields could support sentiment, and FII activity will be crucial in this regard.