Developments in US-Iran conflict, oil prices, Q4 earnings to drive markets this week: Analysts

New Delhi, April 19: Stock markets would keenly track developments in the US-Iran conflict, crude oil prices and quarterly earnings from corporates for further direction this week, analysts said.
Besides, trading activity of foreign investors would also influence trading in the markets, they noted. “Geopolitical developments in US-Iran conflict will remain a key monitorable, given their direct impact on crude oil prices and global risk sentiment,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
Meanwhile, the ceasefire between the US and Iran is set to expire on April 22. On the domestic front, focus will shift to the ongoing Q4 FY26 earnings season, he said.
“Market participants will initially react to results from banking heavyweights such as HDFC Bank and ICICI Bank. Subsequently, several key companies, including HCL Technologies, Infosys, Tech Mahindra, Havells, IndusInd Bank, Shriram Finance, are scheduled to announce their results,” Mishra added.
The country’s largest private-sector lender, HDFC Bank, on Saturday reported an 8.04 per cent jump in March quarter consolidated net profit to Rs 20,350.76 crore, but flagged near-term risks from the West Asia conflict for a segment of small-business borrowers.
ICICI Bank on Saturday reported a 9.28 per cent rise in consolidated net profit to Rs 14,755 crore for the March quarter, helped by a nearly 90 per cent drop in provisioning.
Santosh Meena, Head of Research at Swastika Investmart Ltd, said, “The primary driver for the coming week will be the deluge of Q4 earnings reports, alongside a keen focus on US macro data and ongoing geopolitical shifts.” Last week, the BSE benchmark Sensex jumped 943.29 points, or 1.21 per cent, and the NSE Nifty climbed 302.95 points or 1.25 per cent. “Investor attention will be focused on the trajectory of US-Iran negotiations, with greater emphasis on signs of a durable resolution rather than short-term headlines, given the implications for global risk assets, capital flows and crude oil prices.
“Continued stability or further moderation in crude prices could provide a meaningful tailwind for equities and support the broader macro outlook,” Ponmudi R, CEO — Enrich Money, an online trading and wealth tech firm, said.
After the US and Israel launched an attack on Iran on February 28, Tehran largely halted traffic through the Strait of Hormuz that carries one-fifth of global oil supplies.
Following Tehran’s announcement on Friday that it has opened the waterway for commercial traffic, several commercial vessels tried to cross it. However, Tehran on Saturday said it has again closed the waterway, alleging that the US violated a certain understanding reached between the two sides. (PTI)