MUMBAI: The Iran-Israel conflict and its repercussions on global markets and crude oil prices are expected to weigh on investors on Dalal Street when markets open today. With TA35, Israel’s main index, showing strong resistance in mid-session on Sunday, domestic investors may not see frenetic selling during Monday’s opening trades, market players said.In addition, investors will have to consider a host of other factors, such as rate decisions by at least three major central banks, the Federal Reserve in the US, the Bank of Japan, and the Bank of England.
Market players will also keep an eye on the minutes of the RBI’s policy meeting of June 6, which will be released this week, the progress of the monsoon, and the FII trading trend. On Friday, after the news broke that Israel attacked Iran and the latter retaliated, Sensex and Nifty dipped sharply but recovered through the session, each closing about 0.7% down. Sensex was at 81,119 points, while Nifty was at 24,719 points.According to Ajit Mishra of Religare Broking, markets are likely to remain volatile due to the ongoing geopolitical uncertainty in West Asia and the key central bank meetings. “The US Federal Reserve’s upcoming policy decision will be closely tracked, as global market participants look for clarity on the timing and magnitude of potential rate cuts, especially in light of mixed economic signals.”
