Equity markets this week will most likely be pinning their hopes on Q1 earnings from blue-chip firms even as they keep a wary eye on tariff-related news, say analysts.
Moreover, the Reserve Bank of India’s (RBI) monetary policy meeting and foreign investor fund flows will also drive markets’ mood and investors’ sentiment.
“At the domestic level, all eyes will be on the Reserve Bank of India’s monetary policy meeting, in which the central bank’s commentary on inflation, liquidity, and growth outlook will be keenly watched. On the earnings front, results from marquee companies, including Bharti Airtel, DLF, Bajaj Auto, Hero MotoCorp, Tata Motors, State Bank of India and Life Insurance Corporation of India will shape sectoral momentum,” opined Ajit Mishra, SVP, Research, Religare Broking Limited.
Also Read: Macro data, US tariff updates to drive stock markets this week
Other important upcoming events this week include the release of monthly HSBC services and composite PMI and crude oil price movement, which are likely to influence near-term volatility, Mishra added.
Meanwhile, Pravesh Gour, Senior Technical Analyst at Swastika Investmart Limited, said he believed the RBI policy meeting scheduled for August 6 to be a key event.
“Looking ahead, the RBI policy meeting scheduled for August 6 will be a key event, especially amid heightened volatility from both global and domestic triggers.
Additionally, several major Nifty companies, including Adani Ports, Bharti Airtel, Bajaj Auto, Hero MotoCorp, Trent, Titan, State Bank of India and Tata Motors are also set to report their earnings this week, which could drive stock-specific action,” he said.
Trade-related concerns and persistent selling by foreign investors had added to the gloom in the markets last week as the BSE benchmark Sensex tanked 863.18 points or 1.05 per cent, and the NSE Nifty dropped 271.65 points or 1.09 per cent.
On Friday, the Sensex tumbled 585.67 points or 0.72 per cent to settle at 80,599.91, and the Nifty declined 203 points or 0.82 per cent to 24,565.35.
US President Donald Trump’s announcement of a 25 per cent tariff imposition on Indian goods from August 7 rattled markets. He also said there would be an unspecified penalty for India’s continued engagement with Russia in energy and defense goods.
Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services Limited, predicts Indian equities to remain in consolidation mode amid the imposition of US tariffs, a mixed Q1 FY26 earnings season so far, and intensifying FII outflows.
"On the macro front, important data to watch include the RBI and Bank of England’s interest rate decisions, along with the services PMI for both the US and India," he added.
Analysts do see the rainbow at the end of the tariff tunnel, and believe that there will be a trade deal finalised between India and the US after the next round of negotiations.
“A steady trend of FPI flows will emerge after the dust settles,” said Vijayakumar of Geojit Investments.
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