Market Volatility Looms as West Asia Conflict Escalates
The global markets are set to be impacted by several key factors this week. The ongoing West Asia conflict has led to a spike in Brent crude prices, which is causing concern for India's macroeconomic situation.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that if the price of crude oil declines and stabilizes, Foreign Portfolio Investors (FPIs) are likely to become consistent buyers in India.
The US Federal Reserve's policy meeting is also expected this week, with markets anticipating no change in interest rates. However, some investors have raised concerns about elevated inflation risks due to recent energy price surges.
FPIs continued their selling spree in South Korea and Taiwan, but debt inflows remain robust due to tax reforms announced by the government.