Global Factors to Guide Sensex and Nifty This Week Amid Crude Oil Concerns

Indian stock markets are expected to remain sensitive to global developments this week due to various external factors, according to analysts. The price of Brent crude oil holding above $90 per barrel is a key concern for India, while geopolitical uncertainty surrounding the Strait of Hormuz could keep markets volatile.

Ajit Mishra, SVP at Religare Broking Ltd, stated that investors will closely follow the Jackson Hole symposium for indications about the future path of US interest rates. Other data to be watched includes US GDP estimates, durable goods orders, and consumer confidence data, which will provide clues about the health of the world's largest economy and the Federal Reserve's policy outlook.

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. Fed Chair Kevin Warsh's address at Jackson Hole will be closely watched amid volatile US Treasury yields, persistent inflation concerns, and signs of weakness in the labor market.

Foreign portfolio investors have stepped up their buying of Indian equities, investing ₹23,544 crore so far in August, but 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.