Crude Oil, West Asia Tensions to Drive Markets This Week
Crude oil prices and geopolitical tensions in West Asia will dictate stock market direction this week, according to analysts. The Strait of Hormuz developments, foreign investor trading activity, and domestic quarterly earnings will also remain key monitorables for the Indian stock market.
Ajit Mishra, SVP, Research, Religare Broking Ltd, said that domestically investors will closely monitor the July CPI inflation print, WPI inflation, and the latest foreign exchange reserves data for fresh insights into inflation trends and external sector stability. The Q1 FY27 earnings season will gather further momentum, with several companies, including HAL, Bharat Forge, Grasim Industries, and Tata Motors, scheduled to announce their quarterly results.
Globally, market participants will continue to monitor developments surrounding the Strait of Hormuz, movements in crude oil prices, and broader geopolitical negotiations involving Iran. Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said that this week is likely to be shaped by two dominant themes: developments in the Middle East and the July US inflation report.
Meanwhile, Foreign Portfolio Investors (FPIs) maintained their buying spree in Indian equities, investing Rs 12,921 crore in the first week of August. The BSE benchmark Sensex climbed 404.53 points, or 0.51 per cent, and the NSE Nifty went up by 187.05 points, or 0.76 per cent.