Mumbai: The Indian stock market is likely to remain volatile next week as investors track the minutes of the US Federal Reserve’s latest policy meeting, developments in the US-Iran conflict, elevated crude oil prices, foreign fund flows and movements in gold prices.

After ending the week on a weak note, market participants are expected to monitor global cues closely and assess their implications for inflation, the rupee and corporate earnings. The Sensex declined 0.62 per cent over the week to close at 78,009.25, while the Nifty fell 0.83 per cent to 24,366. The broader market was mixed: the MidCap index gained 0.50 per cent, while the SmallCap index declined 0.66 per cent.

A key trigger for domestic equities will be the release of the minutes of the US Federal Open Market Committee’s July 28–29 meeting on August 19. The minutes are expected to provide greater clarity on the debate within the US central bank after policymakers voted 9–3 to keep the federal funds rate unchanged at 3.50–3.75 per cent.

Geopolitical developments related to the US-Iran conflict will remain another major focus. Iran’s Deputy Foreign Minister Kazem Gharibabadi has reiterated Tehran’s position that the Strait of Hormuz has been, and will remain, under Iranian control. Crude oil prices will therefore stay under close watch. Oil futures rose more than $1 a barrel on Friday amid attacks on tankers and limited progress toward a peace agreement between the Trump administration and Iran.

For India, sustained high crude prices could add pressure on inflation, the rupee and corporate margins, particularly in sectors with high energy and transportation costs. A further rise in oil prices could weigh on investor sentiment and complicate expectations around domestic interest rates.

Foreign and domestic institutional flows will also remain an important driver. On August 14, foreign institutional investors turned net buyers, purchasing shares worth Rs 12,854.44 crore and selling equities worth Rs 12,346.32 crore, for net buying of Rs 508.12 crore. Domestic institutional investors also remained net buyers, with purchases of Rs 14,295.49 crore against sales of Rs 13,939.09 crore, resulting in net buying of Rs 356.40 crore.

Gold price movements are expected to feature among the cues that investors track alongside these factors as they position for the week ahead.