With more quarterly earnings due to be made public this week, investors are likely to remain focused on performances of blue-chip firms, inflation data, and the possible outcome of ongoing India-US trade talks, say analysts.
Global market trends and trading activity of foreign investors will also help determine movements in equities, they say.
SimranJeet Singh Bhatia, senior equity research analyst at financial services provider, Almondz Global, believes that global cues and India-US trade talks will stay under focus as the overall dilemma surrounding the impending interim deal continues.
“Traders are not confident about taking any major positive bets in this uncertain environment,” he adds.
Also Read: Stock markets close lower amid mixed global trends
Indian stock markets lost over a per cent last week, mostly pressured by the lingering uncertainty surrounding global tariffs and a disappointing start to the earnings season with TCS reporting only a 6 per cent increase year-on-year, an expert said.
The BSE benchmark Sensex had dropped 932.42 points or 1.11 per cent, and the NSE Nifty tanked 311.15 points or 1.22 per cent last week.
“Looking ahead, the earnings season will be in full focus. A packed calendar includes results from HCL Tech, Tech Mahindra, Axis Bank, Wipro, JSW Steel, among others. On the macroeconomic front, participants will closely track the WPI and CPI inflation data scheduled for July 14 for further cues on the economy,” opines Ajit Mishra, SVP, Research, Religare Broking Ltd.
Apart from these, the trend in FII flows and movement in crude oil prices will also remain on traders’ radar, Mishra adds.
Globally, markets will remain edgy when it comes to updates on trade negotiations and tariffs. Key economic data releases such as US inflation and China’s GDP numbers, are also significant.
While the tone remained largely stable in the first three sessions, profit-booking in the final sessions dragged the indices lower, says Mishra.
Analysts are expecting volatility in the markets, drive by stock-specific factors.
“The lingering uncertainty around trade negotiations is likely to keep markets in a consolidation mode. Investors will now focus on key domestic macro data, including CPI and WPI inflation prints, while tracking ongoing Q1 earnings and updates on the India-US trade deal,” reiterates Mishra.
Sentiment weakened amid heightened global trade tensions following US President Donald Trump’s renewed tariff threats to Canada and other key partners, he reminds.
Follow us
