Sensex, Nifty May Face Volatility As Crude Oil & Inflation Data Loom

Crude oil prices above $100 per barrel, inflation data from India and the US, movements in the rupee, global bond yields and corporate earnings are likely to shape Indian stock markets next week as investors assess whether the recent recovery can continue.

Domestic benchmark indices rallied on Friday, supported by buying in information technology (IT), fast-moving consumer goods (FMCG), automobile and financial stocks.

The Nifty gained 288.65 points, or 1.30 per cent, to close at 22,520.45, while the Sensex advanced 879.09 points, or 1.23 per cent, to settle at 72,472.33. Both indices ended their eight-week losing streak.

However, continued foreign investor outflows, elevated crude oil prices, a weakening rupee and concerns about tighter monetary policy remain challenges for the market.

Crude oil prices will be a key factor for Dalal Street. Brent crude is trading above $100 per barrel, while West Texas Intermediate (WTI) remains above $90.

Uncertainty surrounding Iran, the Strait of Hormuz and regional energy infrastructure has raised concerns about potential supply disruptions.

Investors will also track the US Consumer Price Index (CPI) report for September, scheduled for release on Wednesday, alongside retail sales data.

These indicators could influence expectations about the Federal Reserve’s next policy move, US Treasury yields and the dollar, with potential implications for emerging-market equities.

India’s September CPI and WPI data will offer clues on inflation and interest rates. Investors will also track the rupee, foreign fund outflows and corporate earnings for signs of market direction.

Global monetary policy and bond yields will further influence sentiment.

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