Mumbai: The Indian stock market is expected to remain volatile next week as investors closely track the impact of the RBI’s record dividend transfer to the government, developments surrounding the ongoing US-Iran conflict, and fluctuations in global crude oil prices.
Persistent weakness in the rupee, inflation concerns, and global cues are also likely to influence market sentiment.
Benchmark indices Sensex and Nifty ended the week with modest gains despite witnessing sharp intraday swings and range-bound trade throughout the sessions.
The volatility in the market was driven by mixed global signals, sectoral rotation, weakness in the Indian rupee, and concerns over inflation and interest rates.
The Nifty rose 0.32 per cent during the week to settle at 23,719.30, while the Sensex gained 0.23 per cent to close at 75,415.35.
Going into the new week, market participants are expected to focus on the Reserve Bank of India’s record surplus transfer to the Centre.
The RBI on Friday announced a dividend payout of Rs 2.87 lakh crore to the government for FY26.
Experts believe the large dividend transfer could provide fiscal support to the government and improve liquidity conditions, which may aid market sentiment in the near term.
Geopolitical tensions in West Asia are also likely to remain a key trigger for Dalal Street. US President Donald Trump reportedly said on Saturday that talks between Washington and Tehran were “moving much closer” to a final agreement aimed at ending the conflict.
Crude oil prices will also remain in focus next week. Brent crude futures settled at $103.54 per barrel, rising 96 cents or 0.94 per cent, while US West Texas Intermediate crude futures ended at $96.60 per barrel, up 25 cents or 0.26 per cent.
Experts said that apart from these factors, investors will also keep an eye on foreign institutional investor activity, movement in the rupee, and global economic cues for further direction in the market.
(IANS)
