Crude oil, West Asia developments, inflation data to drive markets this week

Markets will keep a close eye on crude oil prices this week as tensions in West Asia continue to simmer. Any escalation could push oil higher, raising input costs for companies and stoking inflation fears. On the data front, US inflation numbers due later in the week will be crucial. A hotter-than-expected print could force the Federal Reserve to delay rate cuts, which would strengthen the dollar and pressure emerging market currencies, including the rupee. Domestically, investors will also track the progress of the monsoon and any fresh cues on government spending. The BSE Sensex closed Friday up 353 points, or 0.51 per cent, and the NSE Nifty went up by 18 points. The coming sessions are likely to see choppy trade as participants weigh global risks against local resilience.