Equity markets this week will turn their focus on the RBI‘s interest rate decision, Q1 earnings from several blue-chip firms and tariff-related news for further cues, analysts said.
Moreover, trading activity of foreign investors and trends in global equity markets will also drive investors’ sentiment.
“At the domestic level, all eyes will be on the Reserve Bank of India’s monetary policy meeting, where 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,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
Factors to drive near-term volatility
Other important triggers include the release of HSBC services and composite PMI, crude oil price movement, and further commentary from the US on trade negotiations — all of which are likely to influence near-term volatility, Mishra added.
ALSO READBeyond HAL & BEL: 2 ‘hidden’ defence stocks that are quietly breaking out
Trade-related concerns and persistent selling by foreign investors added to the gloom in the markets last week.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, “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.
“Meanwhile, several major Nifty companies, including Adani Ports, Bharti Airtel, Bajaj Auto, Hero MotoCorp, Trent, Titan, State Bank of India and Tata Motors, are set to report their earnings this week, which could drive stock-specific action”.
Last week, 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.
US President Donald Trump’s decision to impose a 25 per cent tariff on Indian goods and an unspecified penalty for trade in energy and defence goods with Russia was unexpected, and therefore, it has impacted market sentiments in the short term, VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
ALSO READ5 lessons from Warren Buffet for first time investors
Motilal Oswal on Indian equities
Indian equities are expected to remain in consolidation mode amid the imposition of US tariffs,
» Read More
