This week, benchmark indices are expected to remain range-bound, although select midcap and smallcap stocks may outperform due to robust earnings and sectoral prospects. Improved market sentiment follows a 60-day ceasefire extension between the US and Iran, which has alleviated geopolitical concerns and contributed to a nearly 17% drop in Brent crude prices to $91 per barrel. This decline has also strengthened the Indian rupee by 1.8%, easing inflation and external balance worries. Despite positive global cues, caution is advised as the Indian Meteorological Department forecasts a below-normal monsoon, which could impact agricultural output and rural demand. Key events to monitor this week include the RBI Monetary Policy Committee meeting and manufacturing PMI data from India and the US. Last week, the Nifty50 fell by 0.7%, while broader indices like the Nifty Midcap100 and Nifty Smallcap100 saw gains. Sectors such as defence and power are expected to perform well, supported by strong order visibility and strategic initiatives like the Quad's Critical Minerals Framework.