West Asia Conflict Drives Global Market Sentiment

The stock market is expected to be highly sensitive this week due to several key factors. The ongoing West Asia conflict and its impact on crude oil prices are major concerns for investors, according to analysts.

Brent crude has gained more than 8% during the week, while WTI crude rose over 9%, as renewed US-Iran hostilities increased the geopolitical risk premium in global energy markets. This increase in oil prices will likely have a ripple effect on domestic equities and investor sentiment.

Ajit Mishra from Religare Broking Ltd notes that investors will closely monitor the impact of strong US employment data on expectations regarding the Federal Reserve's September policy decision. Additionally, foreign institutional flows, the rupee, crude oil prices, and domestic liquidity will continue to be key areas of focus for investors.