US-Iran Talks and Oil Prices to Steer Global Markets This Week

Investors will be keeping a close eye on geopolitical developments and oil prices this week as market trends are expected to be driven by these factors, analysts said. The US-Iran diplomatic talks and crude oil prices will remain critical in determining global market sentiment.

Ajit Mishra, SVP research at Religare Broking, noted that any progress on a framework for reopening the Strait of Hormuz could ease energy prices and provide relief to India's import bill and the rupee. Conversely, renewed geopolitical tensions could keep volatility elevated.

On the domestic front, industrial production data for August and the HSBC manufacturing PMI reading will be released during the week. Market participants will also closely monitor foreign institutional investor activity and upcoming monthly auto sales figures.