Mumbai, August 16, 2026 (Yes Punjab News)
Indian equities are likely to remain volatile next week as investors track the US Federal Reserve’s meeting minutes, developments in the US-Iran conflict, crude oil prices, institutional fund flows and movements in gold.
The domestic market ended the week on a weak note, with investors assessing global developments and their potential impact on inflation, the rupee and corporate earnings.
The Sensex fell 0.62 per cent over the week to close at 78,009.25, while the Nifty declined 0.83 per cent to 24,366. The broader market delivered a mixed performance, with the MidCap index rising 0.50 per cent and the SmallCap index falling 0.66 per cent.
US Fed meeting minutes
The minutes of the US Federal Open Market Committee’s July 28-29 meeting, due on August 19, will be a key market trigger. Investors will look for clues about the debate within the US Federal Reserve after policymakers voted 9-3 to keep the federal funds rate unchanged at 3.50-3.75 per cent.
US-Iran tensions
Developments surrounding the US-Iran conflict are likely to influence global risk sentiment. Iran’s Deputy Foreign Minister Kazem Gharibabadi has reiterated Tehran’s position that the strategically important Strait of Hormuz has been and will remain under Iranian control.
Crude oil prices
Oil prices will remain closely watched amid geopolitical tensions. Oil futures gained more than $1 a barrel on Friday following attacks on tankers and limited progress towards a peace agreement between the Trump administration and Iran.
For India, persistently high crude prices could put pressure on inflation, the rupee and corporate margins, particularly in sectors exposed to higher energy and transportation costs. A further rise in oil prices could also weigh on sentiment and complicate expectations around domestic interest rates.
Institutional flows
Foreign and domestic institutional activity will remain another important driver. Foreign institutional investors turned net buyers on August 14, purchasing shares worth Rs 12,854.44 crore and selling equities worth Rs 12,346.32 crore, resulting in net buying of Rs 508.12 crore.
Domestic institutional investors also remained net buyers, with purchases of Rs 14,295.49 crore against sales of Rs 13,939.09 crore, resulting in net buying of Rs 356.40 crore.
Gold prices
Movements in gold prices will also be monitored as investors assess changing global risk conditions and their implications for asset allocation and market sentiment.
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