Israel-Iran war, oil prices likely to be key factors for markets this week

The domestic stock market will continue to monitor the Israel-Iran conflict and its impact on global supplies besides prices of crude oil this week, analysts said.

Global trends and trading activity of foreign investors would also drive investors' sentiment during the week.

The Indian stock market concluded the last week on a robust note, shrugging off mid-week volatility triggered by escalating tensions in the Middle East and a spike in crude oil prices, an expert said.

"This week, global cues will remain the dominant force, with a focus on geopolitical tensions between Iran and Israel, US economic data, and commentary from the Federal Reserve officials.

 

"Domestically, investors will closely monitor monsoon progress, volatility related to monthly expiry, crude oil price movements, and FII activity for further cues," Ajit Mishra,? SVP, Research, Religare Broking Ltd, said.

On Friday, the BSE Sensex surged 1,046.30 points, or 1.29 per cent, to settle at 82,408.17. The 50-share NSE Nifty climbed 319.15 points, or 1.29 per cent, to 25,112.40.

Vinod Nair, Head of Research, Geojit Investments Ltd, said, geopolitical uncertainty continues to loom.

"Investors will also keep a close eye on the upcoming US GDP and PCE (Personal Consumption Expenditure) data, along with India's PMI figures, for cues on the strength and direction of economic recovery at home and abroad," he said.

Last week, the BSE benchmark gauge jumped 1,289.57 points, or 1.58 per cent, and the Nifty surged 393.8 points, or 1.59 per cent.

"Looking ahead, global cues will remain key, with investors eyeing US manufacturing and services PMI, and further developments on the geopolitical front. Markets may consolidate with bouts of volatility," Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

On FPIs movement, Vipul Bhowar, Senior Director, Listed Investments, Waterfield Advisors, said, "The trend of foreign portfolio investment experienced a reversal in April and demonstrated considerable strengthening in May, characterised by positive inflows. The inflows recorded in May represented the highest level observed in eight months, signifying a resurgence of interest from foreign investors in the Indian markets."  Nonetheless, geopolitical tensions, including the conflict between Israel and Iran, alongside global uncertainties, fostered a cautiously optimistic pattern in June, he added.