Indian Stocks Braced for Fed Speech, Iran Tensions, and Crude Oil Volatility

The Indian stock market had a largely unchanged week, extending its losing streak to two consecutive weeks. The benchmark indices, Sensex and Nifty 50, closed with minor gains on Friday, August 21. Concerns over elevated crude oil prices, US-Iran negotiations, and rising US bond yields weighed heavily on market sentiment.

Ponmudi R, CEO of Enrich Money, noted that the relationship between crude oil prices, US Treasury yields, and the dollar will remain a key driver for Indian equities. He also mentioned that investors will monitor the rupee and institutional flows to gauge whether domestic markets can recover and stabilise.

Ajit Mishra, SVP of Research at Religare Broking, recommended a selective approach, focusing on companies with strong earnings visibility, healthy balance sheets, sustainable cash flows, and improving relative strength. He also noted that sectors vulnerable to higher crude prices and global demand uncertainty warrant caution.