Warsh Speech, Iran Tensions to Keep Indian Markets Volatile Next Week

India's benchmark indices are expected to remain volatile next week as investors monitor several key factors. The first keynote address by US Federal Reserve Chairman Kevin Warsh at the annual Jackson Hole Economic Policy Symposium on August 28 is a major trigger for markets. Rising US bond yields, persistent inflation concerns, and global geopolitical uncertainty could continue to influence investor sentiment.

The ongoing US-Iran conflict and negotiations will also remain under close watch. Iran has criticized Washington's plans to impose new sanctions, warning that the measures could further weaken its economy and affect key trading partners, including China. Although hostilities have eased since the US and Israel launched airstrikes on February 28, there has been limited clarity on a durable path towards peace negotiations.

Crude oil prices are another major factor in focus, as they can dictate the direction of Indian equities. Oil futures ended higher on Friday after US President Donald Trump threatened economic sanctions against countries trading with Iran, raising concerns over possible disruptions to global crude supplies. For India, which remains heavily dependent on imported crude, sustained high oil prices could put pressure on inflation, the rupee, corporate margins, and the country's current account.