West Asia Tensions Weigh on India Equities Amid Rising Oil Prices

Geopolitical tensions in West Asia are expected to remain a major concern for Indian equities this week, particularly as Iran's rejection of a US-backed ceasefire proposal continues to raise uncertainty around global oil prices.

Brent crude oil prices have risen above $100 per barrel, up over 13%, which could exacerbate inflation and energy supply concerns in India. The continued weakness of the rupee against the US dollar and sustained Foreign Institutional Investor (FII) selling are also expected to keep investor sentiment cautious.

However, the ongoing Q1FY27 earnings season is likely to drive stock- and sector-specific action, limiting 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 be closely monitoring the US Federal Reserve's policy decision, where interest rates are expected to remain unchanged. Markets will also track the Bank of Japan's policy meeting, US Q2 GDP, Core PCE inflation, Non-farm Payrolls, China's PMI data, Eurozone GDP and inflation, and India's Infrastructure Output for further direction on global growth and interest-rate expectations.