Mumbai: Stock markets are expected to remain volatile in the coming holiday-shortened week, with global developments playing a key role. The ongoing conflict in West Asia and its impact on crude oil prices will be closely watched by investors.
Any rise in oil prices could increase inflation and affect India’s economy, making investors cautious.
Crude Oil Prices in Focus
Experts say crude oil prices will be one of the biggest factors deciding market direction. If prices stay high or cross $100 per barrel, it could put pressure on India’s growth and corporate earnings.
The situation around the Strait of Hormuz is also important, as any disruption there could impact global oil supply and push prices higher.
Holiday-Shortened Week
Markets will remain closed on Thursday due to Shri Ram Navami. This means fewer trading days, which can increase volatility as investors react quickly to global news in a shorter time frame.
Other Key Factors to Watch
Apart from global tensions, several domestic and global indicators will influence the market. Investors will track HSBC Flash PMI data for manufacturing and services, which gives an early idea of business activity in the economy.
Foreign investor activity will also remain important. So far this month, foreign institutional investors (FIIs) have pulled out around ₹88,180 crore from Indian markets.
Movements in the rupee against the US dollar and global market trends will also impact investor sentiment.
Recent Market Performance
Last week, markets ended almost flat. The BSE Sensex fell by 30.96 points (0.04%), while the NSE Nifty declined by 36.6 points (0.15%).
The market started strong but lost gains later due to global concerns and volatility.
Volatility Likely to Continue
Analysts believe markets will remain highly sensitive to news. Any easing in global tensions or fall in crude prices could bring relief rallies. However, further escalation may lead to more selling pressure.
