Indian Stock Market to Stay Sensitive to Global Developments

The Indian stock market is expected to remain sensitive to various global and domestic factors in the coming week, including the US-Iran conflict, crude oil prices, and foreign fund flows.

Market participants will closely watch developments on the diplomatic front between the US and Iran, as any signs of progress or escalation could have implications for crude oil prices, global risk appetite, and equity markets. The US House of Representatives has approved a Russia sanctions bill that would empower President Donald Trump to impose tariffs of up to 100 per cent on countries purchasing Russian oil and gas.

Crude oil prices are likely to remain a key market driver, particularly amid concerns that sustained higher energy costs could add to inflationary pressures and weigh on economic growth. Foreign institutional investor (FII) and foreign portfolio investor (FPI) flows will also be closely watched, as FIIs and FPIs turned net buyers in the cash market on September 18, purchasing shares worth Rs 599.54 crore more than they sold.