Geopolitical tensions, crude oil to drive Indian stock market this week

Indian benchmark indices closed lower last week as elevated crude oil prices and geopolitical risks dampened sentiment. The Sensex fell 0.62 per cent to 78,009.25, while the Nifty declined 0.83 per cent to 24,366, snapping a two-week winning streak, according to analysts cited by The Hindu BusinessLine and Livemint.

Investor focus this week will remain on the US-Iran standoff and developments concerning the Strait of Hormuz, the two outlets report. Ponmudi R of Enrich Money, quoted in Livemint, noted crude oil is expected to be a key variable, with Brent crude settling near $88-$89 a barrel. Both sources also point to the release of the Federal Reserve's July meeting minutes on August 19 as a key trigger, with markets watching for policy signals.

Foreign institutional investor (FII) flows will also be tracked closely. Livemint reports that FIIs turned net buyers on August 14, purchasing shares worth Rs 508.12 crore, while domestic investors remained strong buyers. Ajit Mishra of Religare Broking, cited by both outlets, said the coming week will be relatively data-light, with attention on global monetary policy and geopolitical developments.