Analysts note that crude oil prices and the geopolitical situation in the Middle East will remain key factors influencing the stock market this week. Investors will closely monitor crude oil prices, global bond yields, foreign portfolio investor (FPI) activity, and the implications of the US law allowing tariffs on buyers of Russian oil and gas.
Investors will analyze any consequences of President Donald Trump signing the sanctions law against Russia and Iran. Additionally, they will track foreign investor trading activity and global market trends.
According to Ponmudi R, CEO of Enrich Money, Indian stocks enter a new week where crude oil prices, global bond yields, and geopolitical events are likely to remain the main drivers of sentiment. A new source of uncertainty arises for Indian markets in the trade sector.
US President Donald Trump signed a law that grants his administration expanded authority to impose tariffs of up to 100 percent on imports from major buyers of Russian oil and gas. India may be among the countries at risk due to significant purchases of Russian crude oil.
US President Donald Trump signed the Sanctions Law against Russia and Iran, which aims to impose strict levies on Moscow and its main energy buyers, such as China and India. The White House reported that on September 18, 2026, the President signed H.R. 5334, known as the 'Linsay O. Graham Act on Sanctions Against Russia and Iran 2026,' which authorizes and expands legislative sanctions, tariffs, and bans against Russia, while also extending existing sanctions against Iran.
The House of Representatives passed the Sanctions Law against Russia and Iran on Wednesday, which provides for imposing sanctions on the leadership of Russia and its energy sector, as well as on participants in Moscow's defense industry and its so-called 'shadow fleet.' This law also gives President Trump the right to impose tariffs of up to 100 percent on countries purchasing Russian oil and gas, including China and India.
The law grants Trump broad implementation powers, including defining countries subject to tariffs, setting tariff rates, and the ability to repeal sanction provisions. The law takes effect within 30 days of its signing by the President and requires him to impose duties of up to 100 percent on goods imported from the five largest buyers of Russian crude oil or natural gas by total volume over the 12 months preceding its entry into force.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that globally, key market drivers will remain updates on tensions between the US and Iran, changes in crude oil prices, and treasury bond yields.
Last week, the BSE Sensex benchmark fell by 486.8 points, or 0.65 percent, and the NSE Nifty dropped by 51.7 points, or 0.22 percent. Foreign Portfolio Investors (FPI) have already withdrawn 20,974 crore rupees from Indian stocks in September amid rising crude oil prices, increasing interest rates in the US, bond yields, and global uncertainty.
Santosh Meena, Head of Research at Swastika Investmart Ltd, stated that in the future, market direction will be dictated by key economic indicators both globally and domestically. Investors will closely watch flash PMI data for India, the US, and the Eurozone, as well as upcoming US labor market reports. Domestically, an important event for Indian stocks is the NSE listing scheduled for September 24.
The initial public offering of the National Stock Exchange of India (NSE) worth 22,569 crore rupees was fully subscribed on the second day of trading on Friday, aided by a positive response from non-institutional investors and qualified institutional buyers.
