US-Iran talks and crude oil prices to steer stock markets this week

Stock market sentiment this week is expected to be shaped by US-Iran negotiations, crude oil prices and foreign investor activity. Analysts also expect investors to monitor monsoon progress and geopolitical developments, with markets remaining closed on Friday for Muharram

New Delhi: Movement in the stock market will hinge on the outcome of talks between the US and Iran, crude oil prices, and trading activity of foreign investors in the holiday-shortened week ahead, analysts said.

Technical-level talks will be held in Burgenstock, Switzerland, on Sunday between the US and Iran.

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US Vice President JD Vance was initially supposed to hold the first round of talks with senior Iranian officials on Friday at a mountainside resort in the tiny Swiss village of Obburgen, but his Iranian counterparts cancelled their plans to attend because of escalating fighting between Israel and Iranian-backed Hezbollah in Lebanon.

Stock markets will remain closed on Friday for Muharram.

“Investor attention in the week ahead is likely to remain firmly focused on developments surrounding the US-Iran peace process. Crude oil prices will remain a key variable, with continued stability supporting India’s macroeconomic outlook, while any deterioration in Middle East relations could reignite volatility,” Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said.

Markets will also track the monsoon’s progress in the country, an analyst said.

“Looking ahead, a wait-and-watch stance is likely to prevail even as the underlying bias turns incrementally positive. India appears to be gradually moving past two major headwinds, tariff-related uncertainty and geopolitical tensions, which should support valuation recovery after an extended period of consolidation…,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Indian equity markets extended their recovery during the week, supported by easing geopolitical concerns, softer crude oil prices and improving global risk sentiment, according to an expert.

Last week, the BSE benchmark Sensex jumped 1,274.95 points, or 1.68 per cent.