Markets Brace For A Volatile Week, US-China Tariff Tensions & Key Inflation Data To Set The Tone

Mumbai: The stock markets are expected to face a choppy week as investors keep a close eye on global and domestic triggers. The renewed tariff tensions between the US and China have rattled global sentiment, with major US indices witnessing sharp declines on Friday.

The Nasdaq Composite dropped 3.56 percent, the S&P 500 fell 2.71 percent, and the Dow Jones slid 1.90 percent, sparking concerns of risk-off sentiment spilling over to emerging markets like India.

According to Ponmudi R, CEO of Enrich Money, “The renewed escalation in the US-China tariff war could lead to dollar outflows and put pressure on equities and currencies in emerging markets.”

Inflation Data and Q2 Earnings to Drive Domestic Sentiment

Back home, the market mood will be influenced by key macroeconomic data and Q2 corporate earnings.

The government will release retail inflation (CPI) figures for September on October 13, followed by wholesale inflation (WPI) data on October 14.

Ajit Mishra, SVP – Research, Religare Broking, said, “This week will be event-heavy as focus shifts to key domestic macroeconomic data and a busy Q2 FY26 earnings calendar.”

Investors will also keep an eye on results from major companies like HCL Technologies, Infosys, Wipro, Tech Mahindra, LTIMindtree, Axis Bank, and Reliance Industries, which are expected to guide sectoral trends and overall market direction.

Global Cues and Fed Chair Speech in Spotlight

Beyond domestic triggers, global market trends and geopolitical developments will continue to shape investor sentiment.

All eyes will be on US Federal Reserve Chair Jerome Powell’s speech on Tuesday, October 14, which could offer clues on future interest rate moves and inflation outlook.

Santosh Meena, Head of Research at Swastika Investmart, said, “Global sentiment has turned cautious after a sharp fall in US markets, and this week could be crucial for investors.”

Last week, Indian markets ended on a strong note — the BSE Sensex gained 1,293.65 points (1.59%), while the Nifty rose 391.1 points (1.57 percent).