Israel-Iran conflict: Can Indian markets stay resilient next week?
What's the story
The Indian stock market made a strong comeback on Friday, ending a three-session losing streak with a weekly gain of 1.6%. The recovery comes despite the growing tensions in the Israel-Iran conflict. As the second week of direct warfare begins, the US has joined Israel in targeting Iranian nuclear facilities. Global markets, including India's D-Street, will closely monitor these developments when trading resumes on Monday.
Conflict escalation
Israel-Iran conflict escalates as US strikes nuclear sites
The Israel-Iran conflict has escalated further with the US striking Iranian nuclear sites and directly joining Israel's war. The targeted locations are said to be the heavily fortified Fordow, Natanz, and Esfahan nuclear facilities. The US B-2 bombers were involved in these strikes. Iran has vowed to retaliate, raising fears of a wider regional conflict. In light of these tensions, the US has started evacuation flights from Israel.
Market influence
US stock market ends Friday's session on a flat note
The US stock market ended Friday's session on a lackluster note, despite better-than-expected Accenture revenue estimates for the third quarter. The ongoing Israel-Iran conflict weighed on Wall Street as investors remained cautious over the developments regarding the conflict. Indian markets will take cues from Wall Street's performance when trading resumes tomorrow.
Upcoming IPOs
13 IPOs to open next week
In the next week, 13 IPOs are expected to hit the Indian stock market, raising nearly ₹16,000 crore. HDB Financial Services' IPO will be among those hitting the D-Street. Meanwhile, BSE Sensex is also set for a reshuffle with Tata Group's Trent and Bharat Electronics (BEL) entering the benchmark index. The changes will take effect from Monday.
Factors
Key corporate actions next week
A number of corporate actions are lined up next week, including record dates for dividends, stock splits, rights issues, and bonus shares. Among the stocks that will be in focus are HDFC Bank, Vedanta, Hindustan Unilever (HUL), Polycab India Ltd., Samvardhana Motherson International Ltd., Automobile Corporation of Goa Ltd., Bajaj Finserv Ltd., Bajaj Holdings & Investment Ltd., and Cipla. Market movements will also depend on foreign institutional investors' (FIIs) behavior.
Indicators
Nifty forms large bull candle; INR gains after 6 days
The Nifty index formed a large bull candle with higher highs and lows, indicating the resumption of an uptrend after recent corrective consolidation. The index closed firmly above the 25,000 levels, signaling strength. The Indian rupee (INR) also strengthened slightly on Friday to close at ₹86.58 per dollar, its first gain in six days amid volatile oil prices and no immediate signs of a truce in the Israel-Iran conflict.