Market investors would keenly track inflation data, the US Fed interest rate decision, and trends in crude oil prices to determine further movement, analysts said.

Besides, the status of the US-Iran deal signing on Sunday, trading activity of foreign investors and movement in global markets would also drive sentiments in domestic equities, experts noted.

“On the domestic front, investors will monitor the release of May WPI inflation data,” Ajit Mishra SVP, Research, Religare Broking Ltd, said.

Globally, the US Federal Reserve’s policy decision will be the most significant event, he added.

US President Donald Trump has said a deal to end the war with Iran would be signed on Sunday and that the strategic Strait of Hormuz would be “open to all” immediately afterwards.

At the same time, Trump kept the threat of fresh attacks dangling if the deal failed to pan out as expected.

Markets are likely to remain highly sensitive to developments surrounding the proposed USIran agreement, Ponmudi R, CEO, Enrich Money, an online trading and wealth tech firm, said.

Meanwhile, foreign investors remained sellers in Indian equities, dumping more than Rs 62,853 crore of shares in the first fortnight of June.

With the latest outflows, total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.87 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025, according to data from the National Securities Depository Ltd (NSDL).

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, on the domestic front, the progress of the monsoon season and inflation trends will remain key areas of focus.

“Another major event on investors’ radar is the upcoming Federal Open Market Committee (FOMC) meeting scheduled for June 16-17, 2026. Market participants will closely monitor the Fed’s commentary, inflation outlook, economic growth projections, and indications regarding future rate cuts,” he added.

Last week, the BSE benchmark Sensex jumped 1,284.61 points, or 1.73 per cent, and the NSE Nifty surged 256.2 points, or 1 per cent.

“Recent geopolitical developments, which everyone expects to lead to a peace deal between the US and Iran, have led to a sharp correction in the price of Brent crude. For a big oil importer like India, this is a huge positive,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.