Crude Oil Prices, West Asia Tensions to Guide Indian Stock Markets

Indian stock markets are expected to be influenced by several key factors this week. Crude oil prices, West Asia tensions, and upcoming inflation data will dictate market direction, according to analysts.

Ajit Mishra of Religare Broking Ltd said that domestically, investors will closely monitor the July CPI inflation print, WPI inflation, and foreign exchange reserves data for fresh insights into inflation trends and external sector stability. The Q1 FY27 earnings season will also gather momentum this week, with several companies scheduled to announce their quarterly results.

Globally, market participants will continue to monitor developments surrounding the Strait of Hormuz, movements in crude oil prices, and broader geopolitical negotiations involving Iran. Ponmudi R, CEO of Enrich Money, said that attention will remain firmly focused on the Middle East, where negotiations over the Strait of Hormuz remain fluid.

Foreign Portfolio Investors (FPIs) maintained their buying spree in Indian equities last week, investing Rs 12,921 crore in the first week of August. The BSE benchmark Sensex climbed 404.53 points or 0.51 per cent, and the NSE Nifty went up by 187.05 points or 0.76 per cent.