Indian Stock Market Set for Volatility Amid Crude Price Hike, Bond Yield Rise
The Indian stock market is expected to remain volatile next week due to several global and domestic factors. Rising crude oil prices, higher bond yields, stronger-than-expected US jobs data, and foreign investor flows are likely to influence sentiment.
The recent tensions between the US and Iran have led to a sharp rise in crude oil prices, with Brent crude forecasted to reach $86 per barrel by Citi. This increase is expected to put additional pressure on inflation and corporate costs in oil-importing economies like India.
Global bond yields have also seen a significant rise, with markets dealing with a combination of oil-driven inflation, expectations of tighter monetary policy, and deteriorating fiscal conditions. The US jobs report showed that employers added 162,000 jobs in August, exceeding economists' expectations.