West Asia conflict and crude prices to influence markets this week

Indian equity markets remained volatile last week, with the Nifty-50 falling for the fourth consecutive week amid rising crude oil prices and escalating US-Iran tensions. The 30-share BSE Sensex declined by 749 points, reflecting increased risk aversion among investors, experts said.

The stronger-than-expected US employment data has drawn investor attention to the Federal Reserve's upcoming policy decision in September. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, said investors will closely monitor how this data influences expectations for the Fed's actions. He added that developments around the Strait of Hormuz remain critical due to their implications for India.

On the domestic front, factors such as foreign institutional flows, the rupee's movement, crude oil prices, and liquidity conditions will continue to be closely watched. Brent crude prices rose over 8 per cent last week, while WTI crude increased by more than 9 per cent, driven by renewed hostilities between the US and Iran and concerns over the Strait of Hormuz, which added to the geopolitical risk premium globally.