Noida, Sep 6 (APAC Media): Indian Stock Markets are likely to remain volatile this week as investors track developments in the West Asia conflict, movements in crude oil prices and key US inflation data for cues on global monetary policy, analysts said.
The escalation in geopolitical tensions has raised concerns over crude oil supplies, with any sustained rise in oil prices likely to weigh on economies such as India that rely heavily on imports.
“Markets are expected to remain highly sensitive to global monetary policy, crude oil prices and geopolitical developments,” said Ajit Mishra, senior vice-president of research at Religare Broking.
Investors will also assess the implications of recent US economic data for the Federal Reserve’s interest-rate outlook. Stronger-than-expected employment data has prompted market participants to reassess expectations around the central bank’s policy decision later this month.
“Investors will closely monitor the impact of the stronger-than-expected US employment data on expectations regarding the Federal Reserve’s September policy decision,” Mishra said.
On the domestic front, foreign fund flows, the rupee and domestic liquidity are expected to remain key market drivers.
“On the domestic front, investors will continue to monitor foreign institutional flows, the rupee, crude oil prices and domestic liquidity,” Mishra said.
Foreign portfolio investors have remained cautious towards Indian equities amid elevated global yields, currency concerns and uncertainty over the direction of crude prices.
Analysts said a sharp increase in oil prices could put additional pressure on India’s import bill and the rupee, while raising concerns over inflation and corporate margins.
Conversely, any easing of geopolitical tensions or moderation in crude prices could provide some relief to equity markets.
The Nifty and Sensex ended higher on Friday but recorded losses for the week, reflecting the cautious mood among investors.
Market participants are expected to watch global developments closely in the coming sessions, with crude oil prices and West Asia tensions likely to remain the immediate triggers for volatility.
News Agency Inputs
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
Also Read:
