Markets are expected to trade with caution this week as geopolitical tensions around the US–Iran situation and movements in crude oil prices continue to drive investor sentiment, analysts said. Traders will also keep a close watch on the rupee-dollar exchange rate and foreign fund flows, which are likely to add to market volatility, they added.

“Markets are set to remain highly volatile this week, with geopolitical headlines around the US–Iran situation guiding direction,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.

He noted that Brent crude remains a key trigger for global markets. “A fall in crude below the $90 level or any progress towards de-escalation could support recovery in risk assets. On the other hand, sustained tensions or escalation may keep volatility elevated and weigh on sentiment,” he added.