Markets Ahead: Busy Week For Dalal Street Amid Earnings, Trade Talks And Inflation Cues

With a busy week ahead, equity markets are expected to react to a host of crucial triggers ranging from corporate earnings to global cues, according to analysts. Investors will closely monitor the first-quarter results of key blue-chip companies, ongoing trade discussions between India and the United States, and domestic inflation data, all of which are likely to influence market direction.

Market participants are also expected to remain cautious in the face of persistent global uncertainties, particularly around tariffs and geopolitical tensions, reported PTI.

Foreign institutional investor (FII) flows, along with trends in global markets and commodity prices, particularly crude oil, will add to the list of factors guiding sentiment.

Corporate Earnings to Lead Market Narrative

After a weak showing last week, market participants will look to quarterly earnings for fresh direction. “First-quarter corporate earnings will be keenly watched over the next few weeks...,” said SimranJeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global. Results from major companies including HCL Tech, Tech Mahindra, Axis Bank, Wipro and JSW Steel are lined up on this week’s calendar.

Ajit Mishra, SVP, Research at Religare Broking Ltd, pointed to inflation readings as another key area of focus. “Participants will closely track the WPI and CPI inflation data scheduled for July 14 for further cues on the economy,” he said. Mishra added that movements in crude oil prices and FII activity would also be on traders' radars.

He noted that the previous week saw the Sensex fall by 932.42 points or 1.11 per cent, while the Nifty declined by 311.15 points or 1.22 per cent, largely due to lacklustre earnings and ongoing tariff uncertainty. “While the tone remained largely stable in the first three sessions, profit-booking in the final sessions dragged the indices lower,” Mishra said.

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Trade Deal Uncertainty Keeps Markets in Wait-and-Watch Mode

Investor sentiment continues to remain cautious amid ongoing trade negotiations between India and the US. “Overall sentiments continue in a dilemma as the wait for a trade deal with the US continues. Traders are not confident about taking any major positive bets in this uncertain environment,” Bhatia added.

Globally, markets will look out for economic updates from key economies, including US inflation data and China’s GDP figures. The impact of renewed trade tensions — especially following fresh tariff threats by US President Donald Trump directed at Canada and other trading partners — has also added to market jitters.

“As the earnings season progresses, markets are expected to witness volatility driven by stock-specific factors. The lingering uncertainty around trade negotiations is likely to keep markets in a consolidation mode,” said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Investors are likely to proceed with caution in the coming sessions, awaiting more clarity on macroeconomic indicators and global trade developments.

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