Investors in the stock market this week would be keeping an eye on renewed tariff tensions between the US and China besides domestic inflation data and quarterly earnings from blue-chips HCL Tech, Infosys and Reliance Industries, said analysts.
Additionally, global market trends and geopolitical developments would also drive the momentum in equities, they said.
“Markets direction this week will hinge on a mix of domestic cues, global macroeconomic trends, and corporate earnings,” agreed Ponmudi R, CEO, Enrich Money, an online trading and wealth tech firm, adding that “the renewed escalation of the US-China tariff war, which sparked a sharp sell-off on Wall-Street on Friday, is expected to dampen global risk sentiment”.
This resurgence in trade tensions could spur dollar outflows, adding further pressure on emerging market equities and currencies, he said.
US markets crashed on Friday, with the Nasdaq Composite tanking 3.56 per cent, S&P 500 tumbling 2.71 per cent and Dow Jones Industrial Average dropping 1.90 per cent.
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Talking about the event-heavy week, Ajit Mishra, SVP, Research, Religare Broking Ltd, said, the focus will shift to key domestic macroeconomic data and a busy Q2 FY26 earnings calendar.
“On the data front, the government will release retail inflation (CPI) figures for September on October 13, followed by wholesale inflation (WPI) on October 14,” he added.
Investors will also keenly watch numbers from IT majors and midcap IT names such as Infosys, HCL Technologies, Wipro, Tech Mahindra, LTIMindtree, along with banking heavyweight Axis Bank, as well as Reliance Industries, he said.
“Globally, Federal Reserve Chair Jerome Powell’s upcoming speech on October 14 is expected to guide global cues on monetary policy direction,” Mishra added.
Investors would also track trading activity of foreign investors this week, an expert said.
“This week is likely to be crucial as global sentiment turned cautious following a sharp decline in the US markets amid renewed tensions between the US and China,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said.
Jerome Powell’s comments will be closely watched for cues on the Fed’s interest rate outlook and inflation trajectory, Meena said.
Last week, the BSE benchmark surged 1,293.65 points or 1.59 per cent, and the NSE Nifty climbed 391.1 points or 1.57 per cent.
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