Experts note that trading activity in the stock market this week will depend on events surrounding the Strait of Hormuz, tensions between the US and Iran, as well as crude oil prices.
After the end of the quarterly reporting season, investors will also closely monitor the activities of foreign investors. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, stated that the development of the situation around the Strait of Hormuz and the trajectory of Brent crude oil prices will remain key market factors in the near future.
Since the reporting season has passed, the upcoming week is expected to be relatively low in information, and investors are likely to focus on expectations regarding global monetary policy, crude oil prices, and geopolitical events.
Globally, attention will be paid to the minutes of the Federal Reserve (Federal Open Market Committee) for signals about the future policy of the Federal Reserve System. Any signs of a tougher stance could negatively impact capital flows in emerging markets and increase volatility in Indian stock markets, he added.
Pomnudi R, CEO of Enrich Money, noted that investor attention next week will likely be focused on events around the Strait of Hormuz and the broader confrontation between the US and Iran. Furthermore, investor focus will shift to the publication of the Federal Reserve meeting minutes for July, which will take place on August 19.
In addition to global trends, investors will closely track the inflow of foreign institutional funds. Last week, the BSE Sensex benchmark fell by 489.92 points, or 0.62 percent, and the NSE Nifty dropped by 204.65 points, or 0.83 percent.
Indian stock markets ended the week in the red, interrupting a two-week upward trend, as rising crude oil prices and renewed geopolitical tensions weakened investor sentiment, Pomnudi added.
Pabitra Mukerjee, Deputy Vice President of Research at Bajaj Broking, reported that this week investors will closely watch fluctuations in crude oil prices and the development of ongoing geopolitical tensions between the US and Iran.
Vinod Nair, Head of Research at Geojit Investments Limited, emphasized that investors will be tracking crude oil, geopolitical events, FOMC minutes, and Chinese economic data for further guidance on global growth and Fed policy.
