Mumbai: The Indian stock market is expected to remain driven by global cues in the coming week, with investors closely tracking the US Federal Reserve’s interest rate decision, a fresh round of June quarter earnings, movements in crude oil prices and developments in the Middle East.
Market participants will also keep an eye on foreign fund flows and the rupee, as elevated geopolitical risks continue to influence sentiment.
The benchmark indices ended the previous week with sharp losses as higher crude oil prices, renewed geopolitical tensions and mixed corporate earnings weighed on investor confidence. Banking stocks emerged among the biggest drags after a mixed set of Q1 FY27 results, while a risk-off mood and weakness in the rupee further capped buying interest.
The Sensex declined 2.68 per cent during the week to settle at 76,059.77, while the Nifty fell 2.33 per cent to close at 23,767.45. The broader market also remained under pressure, with the Nifty Midcap and Smallcap indices losing 1.29 per cent and 2.18 per cent, respectively.
Investors will closely watch the outcome of the US Federal Reserve’s policy meeting scheduled for July 28–29.
Corporate earnings will remain another major focus, with several heavyweight companies, including Larsen & Toubro, Hindustan Unilever, Bharat Electronics, Adani Enterprises, Indian Railway Finance Corporation and ITC, set to announce their April-June quarter results.
Developments in the Middle East will also remain on investors’ radar. Reports that US President Donald Trump has paused plans for broader military action against Iran after concerns over shrinking air defence missile stockpiles have offered some relief, but any escalation in the region could quickly revive volatility across global financial markets.
Crude oil prices will be another key factor to monitor. Oil prices fell more than 4 per cent on Friday following reports that China had intensified efforts to revive stalled peace negotiations between the United States and Iran.
(IANS)
