Oil prices and geopolitics to drive markets this week

Investors will focus on geopolitical developments, crude oil prices, bond yields, and macroeconomic data to determine market trends in the holiday-shortened week ahead, analysts said. US-Iran diplomatic talks and oil prices are expected to drive global market sentiment. Experts noted that progress on a framework for reopening the Strait of Hormuz could ease energy prices, providing relief to India's import bill and the rupee, while renewed tensions could elevate volatility. Domestically, industrial production data for August and the HSBC manufacturing PMI will be released, alongside monitoring of foreign institutional investor activity and monthly auto sales figures. A series of data releases from the US will also be important for global risk sentiment, adding to the factors shaping market direction this week.