Mumbai: Indian stock markets are likely to stay under pressure this week. Analysts say the key factors to watch will be the ongoing conflict between Iran and Israel, the price of crude oil, and the US Federal Reserve’s upcoming decision on interest rates.
Last week, rising tensions in the Middle East led to a sharp rise in oil prices. This triggered a global risk-off mood, where investors became more cautious and pulled out money from riskier assets like stocks. As a result, the Sensex and Nifty both fell by nearly 1 percent on Friday.
Experts say global cues will strongly influence Indian markets this week. Ketan Vikam from Almondz Institutional Equities said that growing geopolitical risks may keep investors nervous. He added that traders will also wait for the US Fed’s rate decision on Wednesday, as well as updates from the central banks of Japan and the UK.
Vinod Nair of Geojit Investments noted that market valuations are already high, and the current global risks may make investors more cautious. He said everyone will be closely watching the US Fed’s comments and future outlook.
Ajit Mishra from Religare Broking said the focus will also be on the movement of crude oil prices, monsoon progress in India, WPI inflation numbers, and foreign investor activity. He added that mixed economic data from the US makes it unclear whether rate cuts will happen soon.
Siddhartha Khemka from Motilal Oswal Financial Services said that weak global cues could keep Indian markets subdued. However, sector-specific news could create some movement in particular stocks.
In short, this week is expected to be uncertain and volatile. Investors are advised to remain cautious and watch global and domestic developments closely.
(With PTI Inputs)
