Dalal Street Week Ahead: Key Themes to Monitor Include US-Iran Tensions, FII Trading Activity, and Crude Oil Prices

Market Sentiment to be Influenced by US-Iran Situation, OPEC+ Meeting, and Foreign Investor Trading Activity

The week ahead is expected to be event-packed, with developments related to the US-Iran situation, the OPEC+ ministers' meeting, and foreign investor trading activity potentially influencing equity market sentiment.

Key Macroeconomic Data to be Released

Investors will be tracking key macroeconomic data, including India's Consumer Price Index (CPI) inflation data for May, scheduled to be released on June 12. On the global front, the US Bureau of Labor Statistics will release the US Consumer Price Index data for May on June 10. Additionally, investors will be closely monitoring foreign exchange reserves data, also scheduled for release on June 12.

Read also: Concerns Rise Over Hedge Fund Crowding Amplifying Systemic Risk in Times of Crisis

OPEC+ Meeting and US-Iran Situation

The investors will react to the OPEC+ meeting on June 7 for any output policy response amid the evolving geopolitical situation in West Asia. Meanwhile, the US-Iran situation remains in focus, with Pakistani Interior Minister Mohsin Naqvi in Tehran to restart negotiations between Iran and the US. The American military has shot down two more Iranian drones over the Strait of Hormuz that threatened international maritime traffic.

Global Market Trends

Read also: Centre Considers Dropping Rajesh Exports from Battery PLI Scheme Amid SEBI Fraud Allegations

US markets ended sharply lower on Friday, with the Nasdaq Composite declining 4.18 percent. The S&P 500 fell 2.64 percent, while the Dow Jones Industrial Average dropped 1.35 percent. The Nasdaq fell 4 percent, marking its worst single-day decline since April 2025, as investors aggressively reduced exposure to semiconductor and technology stocks.

FII Trading Activity

Foreign investors continued to reduce exposure to Indian equities, withdrawing nearly Rs 43,000 crore during the first week of June. With this, total outflows by foreign portfolio investors (FPIs) from Indian equities have reached Rs 2.67 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore withdrawn during the whole of 2025.

Rupee Movement and Crude Oil Prices

The movement of the rupee against the US dollar will remain in focus, with the Indian currency having weakened nearly 6 percent so far in 2026 and around 10 percent over the past year. Crude oil prices are expected to remain a key market driver amid concerns over global supply disruptions and developments related to shipping routes in the Strait of Hormuz.

Primary Market Activity

In the primary market, Hexagon Nutrition initial public offering (IPO) will enter the second day of subscription during the week on Monday. The allotment of CMR Green Technologies IPO is scheduled on June 8. Meanwhile, quick commerce firm Zepto is expected to file an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

Technical Outlook

Market analysts said the broader trend remains weak despite mixed performance among heavyweight stocks. A cautious stance is warranted, with a sell-on-rise approach preferred until the Nifty decisively reclaims the 23,700 level.