Geopolitics and Oil Prices Set to Guide Stock Market in Holiday-Shortened Week
New Delhi, Investors will be keeping a close eye on geopolitical developments and crude oil prices as they steer the stock market in the upcoming holiday-shortened week, according to analysts. The US-Iran diplomatic talks and crude oil prices are expected to drive global market sentiment.
Experts believe that any progress on a framework for reopening the Strait of Hormuz could ease energy prices and provide some relief to India's import bill and the rupee, while 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 (FII) activity and the upcoming monthly auto sales figures. Global bond yields will remain important following the Federal Reserve's September policy decision.