Crude Oil, US Policies and FII Money Flow to Decide Indian Market Trend (Image: Google)
New Delhi: The Indian stock market is expected to remain highly sensitive to global developments in the coming week, with investors closely monitoring US-Iran tensions, crude oil prices, tariff decisions, foreign fund movements and currency trends. Market experts believe international events and changing risk sentiment could play a major role in deciding the direction of equities.
Investors will closely watch developments related to US-Iran tensions and any possible movement on the diplomatic front. Any change in the situation could influence crude oil prices, inflation expectations and global market sentiment. Since energy prices have a direct impact on economies, fluctuations in crude oil could affect investor confidence.
Rising crude oil prices have emerged as one of the biggest concerns for markets due to their impact on inflation and economic growth. Higher energy costs can increase pressure on businesses and consumers, making oil price movements an important factor for equity investors.
Global markets are also tracking developments around US trade policies. The US House of Representatives has approved a Russia sanctions bill that could allow President Donald Trump to impose tariffs of up to 100% on countries importing Russian oil and gas. The move could have wider implications for major energy importers, including India and China, potentially affecting trade and energy flows.
Foreign Institutional Investor (FII) movements will remain a major focus area for the market. FIIs turned net buyers in the cash segment on September 18, 2026, purchasing shares worth Rs599.54 Crore more than they sold. Domestic institutional investors (DIIs) also remained buyers, recording net purchases of Rs1,019.69 crore. Sustained buying from institutional investors could influence market sentiment in the coming sessions.
The movement of the Indian rupee against the US dollar will also be closely monitored by investors. Currency fluctuations can impact import costs, corporate earnings and overall market sentiment, especially amid global uncertainty.
The Indian stock market ended the shortened trading week on a weak note as concerns over crude oil prices and rising global bond yields weighed on sentiment. The Sensex declined 0.65% during the week to close at 74,294.46, while the Nifty fell 0.22% to finish at 23,346.40.
Broader market indices remained mostly stable after a volatile trading period, following strong performances in previous weeks.
