“This week is packed with several important developments and data releases, both domestically and globally. Geopolitical developments will remain the key factor to watch, as their impact on crude oil prices is likely to influence overall market direction.
“On the domestic front, market participants will closely track key macroeconomic indicators, such as WPI inflation, balance of trade data and foreign exchange reserves,” Ajit Mishra – SVP, Research, Religare Broking Ltd, told PTI.
Focus on US Fed Decision and Global Economic Signals
Globally, investors will focus on the US Federal Reserve’s interest rate decision and the FOMC (Federal Open Market Committee) economic projections, he added.
Markets Witness Sharp Correction Last Week
Indian equity markets ended the week under significant corrective pressure as global risk sentiment deteriorated amid rising crude oil prices, escalating geopolitical tensions in West Asia, and persistent selling by foreign institutional investors, Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Since February 27, the 30-share BSE benchmark has nosedived 6,723.27 points or 8.27 per cent.
Strait of Hormuz Disruption Raises Global Energy Concerns
The US-Israel and Iran conflict escalated from February 28 onwards. The conflict has led to a blockade of the Strait of Hormuz, the main transit route for Gulf energy supplies.
“The week ahead is expected to remain highly volatile, with market direction largely influenced by developments surrounding the ongoing conflict in the Middle East.
“Particular focus will remain on the Strait of Hormuz, a critical energy chokepoint, where any prolonged disruption to shipping could tighten global oil supplies, influence inflation expectations across Asia, and keep overall risk sentiment fragile,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
FII Flows, Rupee Movement to Remain Key Indicators
Additionally, FII flows and movements in the rupee will remain key indicators, as global capital allocation toward emerging markets, like India, continues to be influenced by geopolitical developments and commodity price volatility, he added.
Foreign investors withdrew Rs 52,704 crore (approximately USD 5.73 billion) from domestic equities in the first fortnight of March amid escalating tensions in West Asia, the depreciation of the rupee, and concerns over the impact of high crude oil prices on India’s growth and corporate earnings.
Key Global Economic Data to Watch
