Investors will closely watch inflation data, monsoon progress, foreign investor activity and global developments for market direction this week. | File Pic
New Delhi: Indian stock markets are expected to remain cautious this week as investors monitor developments in West Asia, movements in crude oil prices and the trading activity of foreign institutional investors (FIIs).
Market experts believe geopolitical tensions and global economic data could keep volatility high in the coming days.
Weak Global Cues May Impact Markets
The trading week may begin on a cautious note after a sharp fall in US markets on Friday.
The technology-heavy Nasdaq Composite plunged 4.18 per cent, marking its biggest single-day decline since April 2025.
The S&P 500 dropped 2.64 per cent, while the Dow Jones Industrial Average declined 1.35 per cent.
West Asia Developments in Focus
Investors will closely track ongoing tensions involving the United States and Iran.
Any escalation in the region could affect global crude oil supplies and prices, which in turn may impact inflation, currencies and overall market sentiment.
Analysts say developments in the region remain highly fluid and could continue to create volatility in financial markets.
Key Economic Data This Week
Domestic investors will focus on India’s inflation data for May, scheduled to be released on June 12.
Foreign exchange reserve data, also due on the same day, will provide further clues about the country’s external financial position.
Globally, market participants will watch important economic data from the United States and China.
US Inflation Data Crucial
A major event this week will be the release of US consumer inflation data.
A lower-than-expected inflation reading could strengthen expectations of future interest rate cuts by the Federal Reserve, which may support global equity markets.
However, a higher reading could increase uncertainty and pressure risk assets.
Domestic Supportive Factors
Despite global concerns, analysts point to some positive factors for Indian markets.
Strong GDP growth, a firmer rupee following the latest RBI policy decision and lower crude oil prices could provide support to investor sentiment.
Last week, the BSE Sensex fell 0.71 per cent, while the Nifty 50 declined 0.76 percent.
