As more Q1 earnings stream in, especially from blue-chips, the stock markets are in for an eventful week ahead with foreign traders’ activity also weighing heavily on investors’ sentiment.
Analysts opine it’s the macroeconomic data that will outweigh other factors, even while monthly auto sales numbers and global market trends guide domestic equities.
“The start of the new month will bring attention to key economic data, including Industrial Production (IIP) and HSBC Manufacturing PMI on August 1. Additionally, monthly auto sales figures will be closely monitored. The scheduled expiry of the July derivatives contracts may add further volatility to the markets,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
Also Read: India’s auto exports rise 22 pc in Apr-June
As the earnings season progresses, results from heavyweights such as Tata Steel, Hindustan Unilever, Mahindra & Mahindra, Maruti Suzuki, Sun Pharma, ITC, IndusInd Bank, Asian Paints, NTPC and others will be tracked for insights on sectoral resilience and corporate performance, he said.
The markets, meanwhile, would also be keeping a close watch on the approaching August 1 deadline for US President Donald Trump’s tariff imposition as well as the military tensions between Thailand and Cambodia.
Globally, traders will focus on the US Fed’s interest rate decision although Fed Reserve Chair Jerome Powell has said the central bank doesn’t plan to announce rate cuts just yet.
However, GDP growth numbers and updates on trade negotiations with the US could impact FII flows, Mishra added.
“Looking ahead, all eyes are now on the upcoming Q1 earnings reports from several key companies. Major names like Bharat Electronics Ltd, IndusInd Bank, Asian Paints, Tata Steel, Mahindra & Mahindra, Coal India, Hindustan Unilever, Maruti Suzuki and ITC are set to announce their results this week. Their performance will be crucial in determining whether markets can find support or continue to trend lower in the near term,” stated Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
From foreign fund flows to developments on the India-US trade front, movement of rupee against the dollar and crude oil prices will also be monitored by investors for further direction, he added.
Last week, the BSE benchmark gauge declined 294.64 points or 0.36 per cent, and the Nifty dipped 131.4 points or 0.52 per cent.
“The Indian stock market continued its downward trajectory for the fourth consecutive week, marking the longest losing streak for the Nifty since October 2024. Investor sentiment remained weak, primarily due to the absence of strong domestic triggers, tepid corporate earnings for the June quarter, and persistent selling by foreign institutional investors (FIIs),” Gour remarked.
Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services Limited, said he expected markets to remain in consolidation mode amid continued uncertainty around India-US trade deal, a mixed Q1 FY26 earnings season so far and intensifying FII outflows.
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