Mumbai: Indian stock markets could face another volatile week as investors track US-Iran tensions, crude oil prices, US tariff developments and foreign fund flows.
Global bond yields and movements in the rupee against the US dollar are also expected to influence the direction of the Sensex and Nifty.
US-Iran Tensions In Focus
Investors will closely watch developments surrounding the US-Iran conflict and any signs of diplomatic progress.
Any easing or escalation of tensions could affect crude oil prices and global risk sentiment, with India particularly sensitive to higher energy costs because of its dependence on crude imports.
100% US Tariff Threat
US tariff developments will be another major trigger. President Donald Trump has signed legislation giving his administration authority to impose tariffs of up to 100% on countries that continue buying Russian oil and gas.
The measure could have significant implications for major Russian energy buyers such as India and China, although the law does not automatically impose the maximum tariff.
Markets will watch how Washington implements the new powers and whether they affect India's trade and energy purchases.
Crude Oil Remains Key
Oil prices will remain firmly on investors' radar. Higher crude prices can increase India's import bill, add to inflationary pressures and put pressure on the rupee.
Global bond yields will also be tracked as investors assess interest rate expectations and their impact on foreign capital flows.
FII Flows Under Watch
Foreign institutional investors turned net buyers in the cash market on September 18, purchasing Rs 599.54 crore more shares than they sold.
Domestic institutional investors were also buyers, with net purchases of Rs 1,019.69 crore.
Sensex, Nifty End Week Lower
For the week, the Sensex declined 0.65 percent to 74,294.46, while the Nifty slipped 0.22 percent to 23,346.40.
Midcap and smallcap indices remained largely flat after a volatile week, putting global developments firmly in focus for the next trading week.
