As the new trading week begins, investors are set to focus on a mix of domestic economic indicators and global developments, with geopolitical tensions in the Middle East.Geopolitical developments, crude oil prices and a packed domestic economic calendar are expected to steer stock market sentiment this week, with investors closely tracking the fallout from the latest military exchanges involving the US and Iran.Analysts said the direction of the market will largely depend on how geopolitical tensions evolve, particularly their impact on global crude oil prices. Alongside this, key domestic macroeconomic data, foreign investor activity and the progress of the southwest monsoon will remain firmly on investors’ radar.Ajit Mishra, SVP, Research, Religare Broking Ltd, said that market participants would closely watch a host of economic indicators for cues on the health of the economy.“Market participants will closely monitor Industrial Production (IIP) data, the final HSBC Manufacturing, Services and Composite PMI readings, and the foreign exchange reserves data for fresh insights into the health of the domestic economy,” Mishra told PTI.He added that, globally, the trajectory of crude oil prices and geopolitical developments in the Middle East would remain key drivers of market sentiment.Apart from economic data, investors will also keep a close eye on the monthly auto sales numbers, scheduled to be released on July 1, for indications of consumer demand and broader economic activity.Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said markets are likely to remain sensitive to geopolitical developments in the coming days.“The week ahead is likely to be shaped by developments on the geopolitical front, with investors closely monitoring tensions in the Middle East following the latest military exchanges involving US and Iranian forces. While broader diplomatic efforts remain in place, the recent flare-up has reminded markets that geopolitical risks remain elevated.“Any signs of renewed negotiations or de-escalation could help sustain the recent improvement in risk sentiment, while a further deterioration in relations may prompt a reassessment of global growth and energy market expectations,” he told PTI.On the domestic front, he added that the progress of the southwest monsoon will continue to be a key area of focus for investors.Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd, said investors will also track key economic releases from both India and the US.“Key data releases this week include India’s manufacturing PMI and industrial production data for May, along with the US manufacturing index,” Khemka said.Last week, Dalal Street ended with modest gains. The BSE Sensex rose 297.57 points, or 0.38%, while the NSE Nifty advanced 42.9 points, or 0.17%.