Crude Oil Prices, US Yields to Dominate Indian Stock Market This Week
The Indian stock market is expected to be influenced by several key factors this week, including crude oil prices, US bond yields, foreign portfolio investor flows, and important economic data.
Crude oil prices have been a major concern for the market, with Brent crude climbing close to $110 per barrel due to tensions in West Asia and supply concerns. The high price of oil can lead to increased import costs, higher inflation, squeezed corporate margins, and a weaker rupee.
The US 10-year Treasury yield has also crossed 5%, its highest level since 2007, which can pull money out of emerging markets like India and put additional pressure on Indian equities. The Federal Reserve's recent rate hike has added to market concerns, with another increase potentially keeping interest rates high and reducing spending and demand for technology services.
This week will also see the release of important economic data, including the US flash manufacturing and services PMI, HSBC Flash India PMI, US New Home Sales data, and foreign exchange reserves. The RBI will release forex reserves data for the week ended September 18 on Friday, September 25.