Middle East conflict, crude oil prices and the US Fed interest rate decision will drive markets this week. Analysts flag earnings and inflation risks.
Alpha Score of 59 reflects moderate overall profile with moderate momentum, moderate value, moderate quality, moderate sentiment.
Developments around the West Asia conflict, crude oil prices, and the US Federal Reserve interest rate decision will be the main drivers for market movement this week, analysts said.
Quarterly earnings reports will also drive sentiment, they added.
"Developments surrounding the US-Iran conflict, shipping activity through the Strait of Hormuz, and movements in crude oil prices will remain key drivers of global risk sentiment," said Ajit Mishra, SVP of Research at Religare Broking Ltd. "Investors will closely monitor the US Federal Reserve's policy meeting, where interest rate guidance and commentary on inflation will be critical for global markets."
On the domestic front, market participants will track June Industrial Production data, he said.
Major companies reporting earnings this week include Coal India, BEL, Larsen & Toubro, Hindustan Unilever, Adani Enterprises, Asian Paints, Adani Ports, Bajaj Finance, Mahindra & Mahindra, Tata Steel, Maruti Suzuki, ITC, and Sun Pharma, said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
"Investor attention in the week ahead is expected to remain firmly anchored on developments in the Middle East, with the escalating conflict between the US and Iran continuing to dominate global market sentiment," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. "The sharp rise in crude oil prices has revived concerns over inflation, economic growth and the outlook for monetary policy, keeping investors in a defensive, risk-averse stance."
The US Federal Reserve's policy meeting will be the defining macro event of the week, he said. While markets overwhelmingly expect policymakers to leave interest rates unchanged, the recent surge in energy prices has prompted some investors to question whether inflation risks could remain elevated for longer.
"More important than the rate decision itself will be the Federal Reserve's assessment of the inflation outlook, economic growth and the likely trajectory of monetary policy over the coming quarters," Ponmudi added.
Last week, the BSE benchmark Sensex tanked 2,091.68 points, or 2.67 percent, and the NSE Nifty declined 566.85 points, or 2.32 percent.
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