Global cues to determine market trend this week: Analysts
By: PTI | Published: June 23, 2019 12:06:48 PM The Financial Express
Global equities spiralled lower while crude oil prices spurted Friday after reports said US President Donald Trump had approved military strikes against Iran, but later decided against it.
Equity markets would be guided by overseas cues this week amid lack of domestic triggers and investors would keep a close eye on US-Iran tensions as well as the global trade scenario, say analysts. Market sentiment was hit last week amid geopolitical tensions in the Middle East following attacks on two oil tankers and shooting down of a US surveillance drone in the Strait of Hormuz.
Global equities spiralled lower while crude oil prices spurted Friday after reports said US President Donald Trump had approved military strikes against Iran, but later decided against it. “This week, markets will start speculating on the outcome of Budget policies. International factors may affect domestic markets and any confrontational stance in the Middle East would be a dampener for equity markets,” said Jimeet Modi, Founder and CEO, SAMCO Securities and StockNote.
The movement of the rupee and rising crude oil prices will also be tracked by participants, experts added. Jayant Manglik, President – Retail Distribution, Religare Broking Ltd said, “Participants reaction to trade war scenario and geopolitical tension are causing these ripples and it’s not going to fade away soon.”
“Going ahead, markets would continue to consolidate and may react to geopolitical tensions (in Iran), crude prices and monsoon. Also, the union budget is round the corner,” said Sanjeev Zarbade, VP PCG Research, Kotak Securities. During the last week, the Sensex declined 257.58 points or 0.65 per cent.
The 30-share gauge had closed 407.14 points, or 1.03 per cent lower at 39,194.49 on Friday. The rupee had dived 14 paise to close at 69.58 against the US dollar on Friday. “Indian markets were plagued by dual domestic and global concerns, with rising tensions and rising crude oil prices related to Iran, as well as concerns over looming trade war sparring with the US on the global front,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.