RBI Rate Decision, US-Iran Conflict, Oil Prices to Steer Indian Stock Market
The Indian stock market is set for a significant trading week, driven by several key factors. The Reserve Bank of India's (RBI) interest rate decision on August 3-5 will be closely watched by investors, along with developments surrounding the US-Iran conflict in West Asia and crude oil prices.
Ajit Mishra, SVP at Religare Broking Ltd, notes that the RBI Monetary Policy Committee meeting is a key domestic trigger. Market participants will also monitor the ongoing Q1 FY27 earnings season, with several largecap and midcap companies scheduled to announce their results.
Foreign investors turned net buyers of Indian equities in July, pumping in Rs 20,200 crore, aided by attractive valuations, improving corporate earnings, and easing global headwinds. However, investor attention will remain firmly focused on geopolitical developments in West Asia, with any further escalation likely to impact crude oil prices and global risk sentiment.
The week's trading activity is expected to be influenced by the Q1 earnings of companies such as DLF, Bharti Airtel, ONGC, Hero MotoCorp, LIC, and State Bank of India. Siddhartha Khemka from Motilal Oswal Financial Services Ltd predicts that Indian equities will trade with a positive bias due to healthy domestic macros and a strong Q1FY27 earnings season.