West Asia Conflict, Oil Prices to Dictate Stock Market Trends This Week

Market analysts are warning that developments in the West Asia conflict and crude oil prices will be major drivers for stock market movements this week. The US inflation data, foreign investors' trading activities, and global market trends will also have a significant impact on domestic equities.

Ajit Mishra, SVP of Research at Religare Broking Ltd, emphasized that the week is expected to remain highly sensitive to global monetary policy, crude oil prices, and geopolitical developments. He noted that investors will closely monitor the impact of stronger-than-expected US employment data on expectations regarding the Federal Reserve's September policy decision.

Domestically, investors will continue to keep an eye on foreign institutional flows, the rupee, crude oil prices, and domestic liquidity, according to Mishra. The recent surge in Brent crude, which gained over 8% during the week, has increased the geopolitical risk premium in global energy markets, said Ponmudi R, CEO of Enrich Money.

The renewed US-Iran hostilities and concerns surrounding the Strait of Hormuz have contributed to the rise in oil prices. WTI crude rose over 9% during the same period.