Indian Equities to Remain Under Pressure Amid Geopolitical Tensions

Indian equities are expected to remain under pressure this week due to ongoing geopolitical tensions in West Asia. The rejection of the US-backed temporary ceasefire proposal by Iran has heightened the risk of prolonged disruptions through the Strait of Hormuz and the Red Sea, pushing Brent crude oil prices above $100/bbl (up ~13%). This has raised concerns over inflation, energy supplies, and India's external balances.

The continued weakness in the rupee (around Rs 96.6/US$) and sustained Foreign Institutional Investor (FII) selling are also likely to keep investor sentiment cautious. However, the ongoing Q1FY27 earnings season is expected to drive stock- and sector-specific action, helping limit broader downside.

Key earnings this week include BEL, Coal India, Hindustan Unilever, Larsen & Toubro, Adani Ports, Mahindra & Mahindra, Maruti Suzuki, Coforge, Bajaj Finance, Colgate, Sun Pharma, and Glenmark Pharmaceuticals. Globally, investors will closely monitor the US Federal Reserve's policy decision, where interest rates are expected to remain unchanged.