Stock market momentum to depend on West Asia crisis, report analysts
Market investors would track any implications arising from US President Donald Trump signing the Sanctioning Russia and Iran Act, with crude oil and geopolitical developments remaining the key driving trends for equities this week, analysts said.
Besides, trading activity of foreign investors and trends in global markets would also be tracked, they added.
“Indian equities enter the coming week with crude oil, global bond yields and geopolitical developments likely to remain the main drivers of sentiment. A new source of uncertainty for Indian markets is emerging on the trade front.
“US President Donald Trump has signed into law legislation giving his administration expanded powers to impose tariffs of up to 100 per cent on imports from major buyers of Russian oil and gas, with India among the countries potentially exposed given its significant purchases of Russian crude,” Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.
US President Donald Trump signed the Sanctioning Russia and Iran Act, which seeks to impose steep levies on Moscow and its top energy buyers, such as China and India.
“On Friday, September 18, 2026, the President signed into law: H.R. 5334, the ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,’ which authorises and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran,” the White House said.
The House of Representatives on Wednesday passed the Sanctioning Russia and Iran Act, which seeks to impose sanctions on Russia’s leadership and energy sector – as well as on collaborators in Moscow’s defence industry and its so-called shadow fleet.
The Act also authorises President Trump to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, including China and India.
The law gives Trump wide discretion over implementation, including which countries face tariffs, the tariff rates imposed, and whether sanctions provisions are waived.
The law comes into effect within 30 days of signing by the President and requires him to impose duties of up to 100 per cent on goods imported from countries that are the top five purchasers of Russian crude oil or natural gas by total volume during the 12 months preceding enactment.
“Globally, updates on the US-Iran tensions, movement in crude oil prices and Treasury yields will remain key market drivers,” Ajit Mishra, SVP, Research at Religare Broking, said.
Last week, the BSE benchmark Sensex dropped 486.8 points, or 0.65 per cent, and the NSE Nifty dipped 51.7 points, or 0.22 per cent.
Foreign Portfolio Investors (FPIs) have pulled out Rs 20,974 crore from Indian equities so far in September amid elevated crude oil prices, higher US interest rates, bond yields and global uncertainties.
“Looking ahead, key economic indicators will dictate market direction globally and domestically. Investors will closely track flash PMI figures across India, the US, and the Eurozone, along with upcoming US labour market reports. On the domestic front, the listing of the NSE on September 24 stands out as a major landmark event for Indian equities,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
The Rs 22,569-crore initial public offering of the National Stock Exchange of India (NSE) was fully subscribed on the second day of bidding on Friday, driven by an encouraging response from non-institutional investors and qualified institutional buyers.
