Stock Market Prediction This Week: Developments in the West Asia conflict, crude oil prices and upcoming US inflation data are expected to be the key factors driving stock market sentiment next week, PTI reported quoting analysts.
Foreign investor activity and global market trends are also likely to influence the direction of domestic equities.
“This week is expected to remain highly sensitive to global monetary policy, crude oil prices and geopolitical developments. Investors will closely monitor the impact of the stronger-than-expected US employment data on expectations regarding the Federal Reserve’s September policy decision,” PTI quoted Ajit Mishra, SVP, Research, Religare Broking Ltd.
On the domestic front, investors will continue to closely track foreign institutional flows, movements in the rupee, crude oil prices and domestic liquidity conditions, he added.
“Developments around the Strait of Hormuz will also remain a critical monitorable given their implications for India’s inflation, external balance and corporate profitability,” Mishra noted.
Brent crude prices rose more than 8 per cent during the week, while WTI crude climbed over 9 per cent, as renewed US-Iran hostilities and concerns over the Strait of Hormuz pushed up the geopolitical risk premium in global energy markets, Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
With the latest US jobs data coming in stronger-than-expected and pointing to resilient underlying economic momentum, attention now shifts to the upcoming US inflation data, which could prove critical in shaping expectations for Federal Reserve policy and global market sentiment, according to PTI.
“The direction of Treasury yields and interest-rate expectations will remain closely intertwined with the inflation narrative, while elevated oil prices amid the unresolved Middle East conflict are likely to remain a persistent overhang on market sentiment,” Hariselvan Radhakrishnan, founder and CEO of HST Wealth, a Research Analyst firm, said.
“Indian equity markets remained volatile and under pressure during the week, with the Nifty-50 extending its losing streak to four consecutive weeks, the longest such stretch in five months, as intensifying US-Iran hostilities drove a sharp surge in crude oil prices and kept risk sentiment firmly on edge,” Ponmudi said.
Global markets are entering the week amid several key challenges, with sentiment likely to be driven by US monetary-policy expectations, elevated crude oil prices and the evolving geopolitical situation in West Asia, he added. (With Agency Inputs)
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
