US-Iran Tensions & Brent Crude Above $109 To Keep Markets Volatile, Sensex & Nifty Face Pressure This Week

Mumbai: Analysts believe the Indian stock market may remain under pressure this week as investors closely watch the ongoing US-Iran conflict and rising crude oil prices.

The situation in West Asia has increased worries about global energy supply disruptions, especially around the Strait of Hormuz, one of the world’s most important oil trade routes.

Experts said any fresh escalation in tensions could increase volatility in global markets and impact investor confidence.

Crude Oil Prices Cross Important Level

Brent crude oil prices have climbed above the $109 per barrel mark, adding pressure on inflation and import costs for countries like India.

Higher crude oil prices generally increase transportation and fuel costs, which can affect company earnings and overall economic growth.

Analysts said movements in crude oil prices will remain one of the biggest triggers for Dalal Street this week.

Weak Rupee Also a Concern

The Indian rupee has also come under pressure and recently slipped below the 96 mark against the US dollar.

Market experts believe a weak rupee, along with high oil prices, could further increase inflation concerns and affect foreign investor sentiment.

According to Ajit Mishra of Religare Broking, investors will closely track developments related to oil prices, inflation and global risk sentiment.

Investors Watching Global Developments

Ponmudi R of Enrich Money said markets are likely to remain highly sensitive to headlines related to the US-Iran conflict and diplomatic talks.

He said any positive progress in negotiations may support equity markets and reduce pressure on crude oil prices. However, any worsening of tensions could trigger fresh selling across global markets.

Key Data and Earnings This Week

Investors will also monitor important economic data from India, China and the United States during the week.

Minutes of the US Federal Open Market Committee (FOMC) meeting will also remain in focus.

Apart from global developments, quarterly earnings from companies such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, GAIL and NTPC will influence stock-specific action.

Last week, the Sensex fell 2,090 points while the Nifty dropped over 532 points.