- Indian stocks will be influenced by oil prices and West Asia developments this week
- US sanctions law allows tariffs up to 100% on countries buying Russian energy including India
- The new US law targets Russia’s energy and defense sectors, expanding sanction powers
Indian stocks are set to take their cues from oil prices and developments in West Asia this week, while investors will also weigh the fallout from US trade and sanctions policy, shifts in global bond yields and continued foreign fund outflows.
Investors will be watching the fallout from US President Donald Trump's signing of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which broadens Washington's authority to levy sanctions and tariffs on countries that buy Russian oil and gas.
The legislation could have implications for India given its significant imports of Russian crude. The law authorises the US President to impose tariffs of up to 100% on countries buying Russian energy, including India and China.
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"The President signed into law H.R. 5334, the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,' which authorises and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran," the White House said.
The legislation also targets Russia's energy sector and defence-related entities, while providing the US administration with discretion over the implementation of tariffs and sanctions.
"Indian equities enter the coming week with crude oil, global bond yields and geopolitical developments likely to remain the main drivers of sentiment. A new source of uncertainty for Indian markets is emerging on the trade front," Ponmudi R, chief executive officer of Enrich Money, said.
He noted that the possibility of higher tariffs on countries purchasing Russian crude could add to uncertainty for Indian markets. "Globally, updates on the US-Iran tensions, movement in crude oil prices and Treasury yields will remain key market drivers," Ajit Mishra, senior vice president of research at Religare Broking, said.
Besides geopolitical developments, investors are expected to monitor foreign portfolio investor activity and trends in global markets.
The FPIs have withdrawn Rs 20,974 crore from Indian equities so far in September, amid elevated crude prices, higher US interest rates, rising bond yields and broader global uncertainty.
Last week, the BSE benchmark Sensex declined 486.8 points, or 0.65%, while the NSE Nifty fell 51.7 points, or 0.22%.
Investors will also track upcoming economic data, including flash Purchasing Managers' Index (PMI) readings from India, the US and the Eurozone, along with US labour market indicators.
Domestically, attention is likely to centre on the NSE's market debut on September 24, following a strong response to its Rs 22,569-crore public offering. The IPO was fully subscribed by the second day of bidding, with non-institutional investors and qualified institutional buyers accounting for much of the demand.
(With PTI inputs)
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