Q1 results FY27 to US-Iran war, FII flows: Top five triggers that may dictate the Indian stock market this week

Indian stock market: The Indian stock market closed the week on a strong note, continuing its recovery despite rising geopolitical tensions, higher crude oil prices, and lingering uncertainty over the global interest rate trajectory.

The benchmark indices registered solid weekly gains, with the Nifty 50 rising about 0.53% to end at 24,334.30, while the Sensex advanced nearly 0.75% to settle at 78,151.45.

Market sentiment was supported by better-than-expected Q1 FY27 earnings from the IT sector, with TCS emerging as a key outperformer after gaining nearly 10% during the week. Fresh buying in financial stocks and strong domestic economic fundamentals also aided the positive momentum. However, the upside remained limited as investors weighed the impact of rising energy prices, a weaker currency, and ongoing geopolitical developments in West Asia.

According to Ponmudi R, CEO - Enrich Money, investor focus in the coming week will remain firmly on the evolving geopolitical situation in the Middle East as tensions between the United States and Iran continue to dominate global market sentiment. Any signs of de-escalation could improve risk appetite and support financial markets, while further military escalation or disruptions to shipping through the Strait of Hormuz could trigger renewed volatility across global asset classes.

“Beyond corporate earnings, market participants will continue to monitor foreign institutional investor (FII) flows, global bond yields, movements in the rupee, crude oil prices, and key US macroeconomic data for further direction. The progress of the southwest monsoon will also remain an important domestic monitorable, as rainfall patterns will have a direct bearing on agricultural output, food inflation, rural consumption, and the broader economic outlook,” he said.

The earnings season will continue for the third week as more than 250 companies are scheduled to release their financial results for the quarter ending on June 30, 2026 (Q1 results FY27).

Infosys, One97 Communications (Paytm), Eternal (Zomato), InterGlobe Aviation (IndiGo), Meesho, Bharat Petroleum Corporation (BPCL) are among the marquee companies to declare their Q1 earnings 2026 next week.

“Domestically, investor focus is expected to shift increasingly towards stock-specific opportunities as the first-quarter earnings season gathers pace. The IT sector is likely to remain in the spotlight, with Infosys scheduled to announce its quarterly results in the coming week. The earnings release follows better-than-expected numbers from TCS and HCL Technologies, which have revived investor optimism towards the domestic IT sector,” said Ponmudi.

The United States carried out fresh strikes on Iran, according to US Central Command, after earlier confirming that two American military personnel were killed in Jordan and another remained missing following an Iranian attack.

Ahead of the strikes, Iran's Supreme Leader warned that Washington would face consequences for what he described as efforts to further escalate the conflict.

Iran's Mehr News Agency reported that the U.S. targeted an area near Sirik in southern Iran, adding that there were no reported casualties or damage to infrastructure.

Hostilities between the US and Iran have escalated since an interim ceasefire reached a month ago collapsed last week, fuelling concerns over the possibility of a broader conflict.

In a statement shared through his official social media accounts and carried by Iranian state media, Supreme Leader Ayatollah Mojtaba Khamenei said recent U.S. actions demonstrated that former President Donald Trump's signature was "utterly worthless and devoid of credibility."

Oil prices surged more than 4% on Friday, reaching their highest level in over a month, as escalating attacks between the United States and Iran heightened concerns over potential supply disruptions in the Gulf. Market sentiment was further rattled by fears of a possible closure of the Red Sea, adding to...