Israel-Iran Tensions & Crude Price Volatility To Steer Market Mood, Investors to Track Global Cues, FII Trends & Macro Data This Week

Mumbai: As tensions between Israel and Iran persist, investors will keep a close watch on the potential impact on global crude oil supplies and prices. Analysts believe the market will remain sensitive to any escalation in the Middle East, which could fuel volatility in commodities and equity markets.

Crude Oil Prices and FII Trends Under Lens

Volatility in crude oil prices remains a major trigger for Indian equities, especially given the country's dependence on imports. Additionally, the market is closely tracking foreign institutional investor (FII) activity. According to Vipul Bhowar of Waterfield Advisors, while May saw the highest foreign inflows in eight months, June has reflected a more cautious approach amid global uncertainties.

Macro Data, Fed Commentary to Guide Global Markets

Investors globally will look to key US economic indicators like GDP growth and Personal Consumption Expenditure (PCE) inflation data. Comments from Federal Reserve officials will also shape expectations around interest rate policy. These developments are expected to influence sentiment in emerging markets like India.

Robust Weekly Gains Despite Mid-Week Jitters

Despite volatility during the week due to geopolitical concerns and oil price spikes, Indian markets ended on a strong note. The BSE Sensex surged 1,046.30 points on Friday, closing at 82,408.17, while the Nifty ended at 25,112.40, gaining 319.15 points. On a weekly basis, Sensex jumped 1.58% and Nifty rose 1.59%.

Domestic Factors: Monsoon and Monthly Expiry in Focus

Back home, market participants will track the progress of the monsoon, which is vital for rural demand and inflation. With the monthly F&O expiry due, traders expect increased volatility in the latter part of the week.

Outlook: Volatile Yet Constructive Tone Expected

Analysts including Ajit Mishra from Religare and Siddhartha Khemka from Motilal Oswal foresee a consolidative but positive tone for the markets, hinging heavily on global cues and data prints.

(With PTI Inputs)