Markets ahead: Fresh tension in West Asia, crude price to watch out for

Developments on the geopolitical front, with the latest military exchanges involving the US and Iran, their impact on crude oil prices and domestic macroeconomic data announcements would dictate sentiments in the stock market this week, analysts said.

Besides, trading patterns of foreign investors and progress of the southwest monsoon would also remain the key areas of focus for investors, they added.
“Market participants will closely monitor Industrial Production (IIP) data, the final HSBC Manufacturing, Services and Composite PMI readings, and the foreign exchange reserves data for fresh insights into the health of the domestic economy,” Ajit Mishra, SVP, Research, Religare Broking Ltd,  said.

Globally, the trajectory of crude oil prices and geopolitical developments in West Asia will remain key drivers of market sentiment, he said.
The monthly auto sales numbers on July 1 will also be tracked by investors closely.

“The week ahead is likely to be shaped by developments on the geopolitical front, with investors closely monitoring tensions in the Middle East following the latest military exchanges involving US and Iranian forces. While broader diplomatic efforts remain in place, the recent flare-up has reminded markets that geopolitical risks remain elevated.