Global markets are entering a crucial week shaped by five important themes. Investors are closely watching India US trade talks, Middle East tensions, crude oil prices, foreign fund flows, and the rupee’s movement against the dollar.
India and the United States are negotiating a trade deal. India wants lower tariffs on its exports while the US seeks wider access for its goods. A breakthrough could lift several sectors and strengthen bilateral ties.
Geopolitical stress in the Middle East remains a concern. Drone strikes and military actions have unsettled energy markets. Any escalation could push crude oil higher and weigh on equities worldwide.
Crude oil prices have corrected sharply. Brent closed at 73.61 dollars per barrel while WTI ended near 69.23 dollars. This marks weekly falls of 11% and 9.6%. For India, a major importer, lower prices ease inflation and reduce costs across industries.
Foreign investors sold equities worth 2,080 crore rupees last week, adding to June’s total outflow of 45,130 crore rupees. Domestic institutions supported markets with 11,100 crore rupees of buying. The balance of flows will decide near term direction.
The rupee strengthened to 94.39 per dollar, helped by cheaper crude and supportive inflows. Yet, US Federal Reserve concerns and dollar strength remain risks.
Sensex closed at 77,100, up 110 points, while Nifty ended at 24,056, gaining 34 points. Falling crude prices and easing supply worries lifted sentiment.