Mumbai, March 15: The upcoming week is crucial for the Indian stock market. The trends will be influenced by the ongoing US-Israel-Iran conflict, foreign investor sentiments, crude oil prices, and the decisions from the Federal Reserve meeting.
The two-day meeting of the US Federal Reserve regarding interest rates will commence on March 17, with announcements expected on March 18. Given the current war situation and rising oil prices, this Fed meeting is deemed particularly significant.
Crude oil prices will also play a vital role in the market this week. Over the past week, disruptions in supply chains have led to an approximately 11% increase in international crude oil prices. Fluctuations in oil prices could significantly determine the market’s direction in the coming week.
The US-Israel-Iran conflict has now entered its third week. President Donald Trump stated on Saturday that the US might conduct additional airstrikes on Iran’s Kharg Island, a key point for Iranian oil exports. This ongoing conflict is likely to impact market movements as well.
Foreign investors have been persistently selling off in the Indian stock market. In the first half of March, foreign institutional investors (FIIs) withdrew ₹52,704 crore from the equity market. Their sentiment will play a crucial role in shaping market trends.
Due to the tensions in the Middle East, the past week has been particularly detrimental for the Indian market. The Sensex dropped by 4,354.98 points, or 5.52%, while the Nifty fell by 1,299.35 points, or 5.31%.
The decline between March 9-13 resulted in a reduction of ₹20 lakh crore in the market capitalization of all companies listed on the Bombay Stock Exchange (BSE), bringing it down to ₹430 lakh crore from approximately ₹450 lakh crore at the start of the week.
The auto sector experienced the most significant decline during this period, with the Nifty Auto index falling by 10.64%. Other sectors also saw losses, including Nifty PSU Bank at 7.27%, Nifty India Defense at 7.01%, Nifty Private Bank at 6.96%, Nifty Metal at 5.90%, Nifty Financial Services at 5.68%, Nifty India Manufacturing at 5.60%, and Nifty Infra at 5.07%.
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