First-quarter earnings, inflation and tensions in the Middle East are among the main factors moving markets
NEW DELHI: The coming week is expected to be driven by a mix of domestic and global catalysts, as investors track progress in earnings season, inflation data, geopolitical developments in West Asia and crude oil price movements, analysts say.The June quarter earnings season is set to gain momentum as several major companies, including HCL Technologies, Tech Mahindra, Union Bank of India and Federal Reserve Bank, are set to announce their results. Analysts said corporate earnings and management comments will be closely watched for signals on business outlook and sector performance.Ajit Mishra, Senior Vice President (Research) at Religare Broking, said investors will be closely monitoring key macroeconomic indicators scheduled for release this week, including June Consumer Price Index (CPI) inflation, Wholesale Price Index (WPI) inflation and the latest foreign exchange reserves data.“Q1FY27 earnings season will gain momentum as management comments are expected to play a pivotal role in shaping sector trends and earnings outlook,” Mishra said.He added that global developments, especially the evolving geopolitical situation between the United States and Iran and its impact on crude oil prices, will remain major factors affecting market sentiment.“India’s Consumer Price Index (CPI) inflation will be released on Monday, followed by the Wholesale Price Index (WPI) on Tuesday,” Santosh Meena, Head of Research at Swastika Investmart, highlighted another factor, adding that market participants will closely monitor monsoon developments along with macroeconomic data.
Globally, investors will also be tracking US inflation numbers, with consumer price inflation data released on Tuesday and producer price inflation data released on Wednesday, both expected to influence expectations about the US Federal Reserve’s interest rate path.Foreign institutional investor (FII) activity will remain another key thing to watch after foreign investors turned net buyers of Indian stocks this month. After remaining net sellers for four straight months, FIIs have invested over Rs 15,157 crore in Indian equities so far in July, supported by improving domestic macroeconomic indicators, a relatively stable rupee, and improving global risk appetite.Local indices ended last week on a weak note. The BSE Sensex fell 194.52 points, or 0.25%, during the week, while the NSE Nifty fell 63.95 points, or 0.26%.