Commodities● Neutral
Crude Oil, Hormuz Tensions to Drive Indian Market This Week
Indian equities face a data-light week as Strait of Hormuz tensions and crude oil prices take center stage after last week's decline. Fed minutes due Aug. 19 also in focus.
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Trading in Indian equities this week will hinge on crude oil prices and developments around the Strait of Hormuz, where the US-Iran standoff continues, analysts said.
The quarterly earnings season has ended, leaving a light domestic calendar. With no major data scheduled, the Federal Reserve's July meeting minutes, due Aug. 19, will be parsed for policy signals.
"Developments surrounding the Strait of Hormuz and the trajectory of Brent crude will remain critical market drivers in the near term. With the earnings season behind us, the coming week will be relatively data-light, with investors likely to focus on global monetary policy expectations, crude oil prices and geopolitical developments," Ajit Mishra, senior vice president of research at Religare Broking, said.
Mishra added that any indication of a more hawkish stance from the Fed could weigh on emerging-market flows and increase volatility in Indian equities.