Fed meet, Q4 earnings, US-Iran tensions likely to drive stock market this week

The Indian stock market will be shaped by a blend of global and local factors—such as the forthcoming Fed meeting, the active earnings season, geopolitical strains, and fluctuations in crude prices—after benchmarks slipped lower.

Both Sensex and Nifty finished lower, breaking a two‑week winning streak, as rising geopolitical jitters and cautious remarks from leading IT companies pressured the market.

After a modest early rally, selling pressure persisted, keeping the market subdued for the rest of the week.

Nifty fell 1.87% to close at 23,897.95, and Sensex slipped 2.33% to finish at 76,664.21.

Analysts noted that Nifty faces immediate resistance at 24,000, with further barriers at 24,150 and 24,350 on the upside.

“Support lies around 23,800, then 23,700; a clear breach beneath 23,500 could spark additional selling,” an analyst remarked.

Ahead, market participants will watch closely for the Federal Open Market Committee’s decision set for April 28‑29.

There is broad expectation that the US Federal Reserve will hold rates steady for a third straight meeting, after pausing in January and March following prior cuts.

Domestically, the Q4 earnings season is gaining momentum, with over 200 firms slated to report results for the quarter ended March 31, 2026.

Investors will scrutinise management commentary for hints on demand, margins and sector trends, especially after recent subdued outlooks from IT heavyweights.

Geopolitical events, notably the US‑Iran standoff, will remain a key focus.

Recent comments from Donald Trump on engaging with Iran have heightened uncertainty, leaving global markets uneasy.

Any shift—whether escalation or de‑escalation—could directly sway investor sentiment.

Crude oil prices, another pivotal driver, stayed volatile through the week, swayed by supply worries and optimism about revived US‑Iran negotiations.

(With inputs from IANS)