Movement in the stock market will hinge on the outcome of talks between the US and Iran, crude oil prices and trading activity of foreign investors in the holiday-shortened week ahead, analysts said.

Technical-level talks will be held in Bürgenstock, Switzerland, on Sunday between the US and Iran.

US Vice President JD Vance was initially supposed to hold a first round of talks with senior Iranian officials on Friday at a mountainside resort in the tiny Swiss village of Obbürgen, but his Iranian counterparts cancelled their plans to attend because of escalating fighting between Israel and Iranian-backed Hezbollah in Lebanon. Stock markets would remain closed on Friday for Muharram.

"Investor attention in the week ahead is likely to remain firmly focused on developments surrounding the US-Iran peace process. Crude oil prices will remain a key variable, with continued stability supporting India's macroeconomic outlook, while any deterioration in Middle East relations could reignite volatility,"  Enrich Money CEO Ponmudi R said.

"Looking ahead, a wait-and-watch stance is likely to prevail even as the underlying bias turns incrementally positive. India appears to be gradually moving past two major headwinds, tariff-related uncertainty and geopolitical tensions, which should support valuation recovery after an extended period of consolidation...," Geojit Investments Limited Head of Research Vinod Nair said.

Business Standard