New Delhi: Analysts anticipate that the US-Iran conflict, foreign institutional investment (FII) flows, and crude oil prices will be significant influences on Dalal Street this week, amid growing inflation concerns.
The Indian rupee has recently fallen below the 96 mark against the US dollar, which is expected to further affect market sentiment.
“Market participants will closely watch developments related to the ongoing US-Iran conflict and their effects on crude oil prices, inflation, and global risk sentiment. Energy market fluctuations and the rupee’s performance will continue to impact the market’s near-term direction,” stated Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.
The drop in the rupee last Friday occurred in the backdrop of high crude oil prices and inflation worries.
“Markets are likely to undergo considerable volatility and will be driven by headlines, as investor sentiment remains tied to the ongoing US–Iran conflict, diplomatic efforts, and trends in global energy markets,” remarked Ponmudi R, CEO of Enrich Money, a wealth tech firm.
He emphasized the strategic significance of the Strait of Hormuz to global energy supply chains, noting that any credible progress in diplomacy could lead to short-covering rallies in equities, boosting emerging market sentiment and potentially lowering crude oil prices. Conversely, any escalation in tensions or disruption of shipping routes could heighten risk aversion, elevate volatility, and pressure global equities, currencies, and commodities.
Currently, Brent crude prices have surged to approximately USD 109 per barrel.
In addition to geopolitical events, investors are advised to closely monitor the rupee’s movements, institutional flow patterns, and global equity performance for further directional cues.
Santosh Meena, Head of Research at Swastika Investmart Ltd, pointed out that the focus for the upcoming week will remain on geopolitical developments and the trajectory of crude oil prices. Investors will also track macroeconomic data releases from major economies, including China, the US, and India, alongside minutes from the US Federal Open Market Committee (FOMC) meeting. Moreover, the tail end of the earnings season is expected to continue driving stock-specific movements across various sectors.
Key companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Gas Authority of India Limited (GAIL), and NTPC are set to announce their quarterly earnings this week.
Last week, the 30-share BSE Sensex declined by 2,090.2 points, or 2.7%, while the 50-share NSE Nifty dropped by 532.65 points, or 2.2%.
Published on May 17, 2026
