Crude Oil, US-Iran Tensions, and Fed Signals to Dictate Sensex, Nifty Movement

The Indian stock market is bracing for a volatile week ahead, influenced by several external factors. Crude oil prices above $90 per barrel remain a major concern for India, while US-Iran tensions and Federal Reserve signals are set to guide investor sentiment.

Ajit Mishra, SVP at Religare Broking Ltd, noted that investors will closely follow the Jackson Hole symposium for indications about the future path of US interest rates. The upcoming release of US GDP estimates, durable goods orders, and consumer confidence data will also be watched for clues about the health of the world's largest economy.

Additionally, Ponmudi R, CEO of Enrich Money, highlighted three major factors that global investors will focus on: the Federal Reserve's policy trajectory, Nvidia's quarterly earnings, and the unresolved US-Iran conflict. With volatile US Treasury yields, persistent inflation concerns, and signs of weakness in the labor market, the Fed Chair's address at Jackson Hole is expected to be closely watched.

Despite a recent surge in foreign portfolio investment, with ₹23,544 crore invested so far in August, benchmark indices ended lower last week. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, expects Indian markets to consolidate after two weeks of correction, with scope for a marginal near-term recovery.