Global cues, oil prices to steer markets this week

Analysts noted that crude oil price trends and progress in ceasefire negotiations between Washington and Tehran will significantly influence equities. Elevated oil prices may continue to pressure markets, while any decline could support a short-term rebound

Metro India News | NEW DELHI 

Ongoing tensions in West Asia and fluctuations in crude oil prices are expected to dominate investor sentiment in the coming holiday-shortened week, according to market analysts.

Domestic stock markets will operate for only three sessions, remaining closed on Tuesday for Mahavir Jayanti and on Friday for Good Friday. Experts say global developments, especially the month-long conflict involving the United States, Israel, and Iran, will remain key triggers for market movement.

Analysts noted that crude oil price trends and progress in ceasefire negotiations between Washington and Tehran will significantly influence equities. Elevated oil prices may continue to pressure markets, while any decline could support a short-term rebound.

The rupee’s movement against the dollar and foreign investor activity will also play a crucial role. Foreign institutional investors have pulled out around Rs 1.14 lakh crore from Indian equities this month, reflecting cautious sentiment amid global uncertainty and a weakening currency.

On the domestic front, investors will track industrial production data for February and the HSBC Manufacturing PMI for March for cues on economic momentum.

Market participants expect continued volatility, with geopolitical developments shaping trends in the near term. Any escalation in the West Asia conflict could intensify pressure on equities, while signs of easing tensions may improve sentiment.

In the previous week, the BSE Sensex declined 949.74 points, while the NSE Nifty fell 294.9 points, reflecting the cautious mood among investors.