Crude, Hormuz & more: What will drive stock market this week

After ending the previous week in green, Dalal Street is set to take cues from a mix of global geopolitical developments and key domestic economic indicators in the upcoming trading sessions. This week, investors will closely watch crude oil prices, developments around the Strait of Hormuz and inflation data.The market will also track foreign portfolio investor (FPI) flows and the progress of the Q1 FY27 earnings season, while developments involving Iran and the broader situation in the Middle East could influence sentiment."Domestically, investors will closely monitor the July CPI inflation print, WPI inflation, and the latest foreign exchange reserves data for fresh insights into inflation trends and external sector stability. The Q1 FY27 earnings season will gather further momentum, with several companies, including HAL, Bharat Forge, Grasim Industries, and Tata Motors, scheduled to announce their quarterly results," Ajit Mishra – SVP, Research, Religare Broking Ltd, told PTI.India's July CPI inflation data is scheduled for release on August 12, followed by WPI inflation data on August 14. Investors will also get the latest foreign exchange reserves data, adding to the domestic macroeconomic indicators due to be monitored during the week.The US will also release key inflation readings, with CPI and PPI data due on August 12 and 13, respectively."The week will also be important from a macroeconomic perspective, with India scheduled to release CPI inflation on August 12 and WPI inflation on August 14. In the US, CPI and PPI (Producer Price Index) data will be released on August 12 and 13, respectively," Santosh Meena, Head of Research at Swastika Investmart Ltd, said.Hormuz, crude prices key global triggersDevelopments around the Strait of Hormuz are likely to remain a major focus for investors, alongside crude oil price movements and negotiations involving Iran."Attention will remain firmly focused on the Middle East, where negotiations over the Strait of Hormuz remain fluid," said Ponmudi R, CEO - Enrich Money."This week is likely to be shaped by two dominant themes: developments in the Middle East and the July US inflation report. Attention will remain firmly focused on the Middle East, where negotiations over the Strait of Hormuz remain fluid," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.Mishra said global market participants would continue to watch the situation around the Strait of Hormuz, crude oil movements and wider geopolitical negotiations involving Iran.Globally, the July US inflation report is expected to be the key macroeconomic event this week, while crude oil is another important monitorable for Indian markets.FPIs remain buyersAgainst this backdrop, foreign portfolio investors continued their buying activity in Indian equities. FPIs invested Rs 12,921 crore in Indian stocks during the first week of August.The buying comes after Indian benchmark indices closed the previous week with gains. The BSE benchmark Sensex advanced 404.53 points, or 0.51 per cent, while the NSE Nifty gained 187.05 points, or 0.76 per cent.The previous week also saw the rollout of the new Closing Auction Session (CAS) framework for F&O stocks, along with the Reserve Bank of India's monetary policy decision and continued geopolitical uncertainties."Markets ended the week with modest gains despite heightened volatility, as investors navigated the roll-out of the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India's monetary policy decision, and lingering geopolitical uncertainties," Mishra said.Meena said the introduction of the Closing Auction Session was the key highlight of the previous week as it marked the first week under the new system.With domestic and US inflation readings due this week, crude oil movements, Middle East developments, FPI activity and quarterly earnings are set to provide several triggers for the market.Get the latest Business News and Live updates. Download the TOI app.