Crude, West Asia tensions, inflation data to steer markets this week

New Delhi: Crude oil prices, geopolitical tensions in West Asia, and upcoming inflation data will dictate stock market direction this week, according to analysts.

Moreover, developments surrounding the Strait of Hormuz, foreign investor trading activity, and domestic quarterly earnings will also remain key monitorables for the Indian stock market, experts added.

“Domestically, investors will closely monitor the July CPI inflation print, WPI inflation, and the latest foreign exchange reserves data for fresh insights into inflation trends and external sector stability. The Q1 FY27 earnings season will gather further momentum, with several companies, including HAL, Bharat Forge, Grasim Industries, and Tata Motors, scheduled to announce their quarterly results,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Globally, market participants will continue to monitor developments surrounding the Strait of Hormuz, movements in crude oil prices, and broader geopolitical negotiations involving Iran, he added.

“This week is likely to be shaped by two dominant themes: developments in the Middle East and the July US inflation report. Attention will remain firmly focused on the Middle East, where negotiations over the Strait of Hormuz remain fluid,” Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said.

On the macroeconomic front, the July US inflation report will be the key global event in the week ahead, he said and added that crude oil will remain another key monitorable for Indian markets.