Sensex, Nifty Set for Volatile Week Amid Oil Surge and Global Yields Rise

Indian stock markets are expected to remain volatile in the coming week as investors monitor rising crude oil prices, global bond yields, and geopolitical tensions between the US and Iran. Benchmark indices ended Friday with modest gains—the Sensex rose 363 points to 76,515, while the Nifty advanced 24 points to 23,897—but broader markets showed mixed performance.

Crude oil prices jumped around 8 per cent during the week following renewed US-Iran strikes and continued closure of the Strait of Hormuz. Citi raised its average Brent crude forecast for Q3 to USD 86 per barrel from USD 80. Higher oil prices could increase inflationary pressure and corporate costs for India, which relies heavily on imported oil. Additionally, a sharp global bond market selloff has pushed yields to multi-year highs, raising borrowing costs and weighing on economic growth prospects.