Q1 Results, India-US Trade Talks In Focus, Inflation Data & Global Trends To Guide Markets

Key Highlights:

- Sensex and Nifty fell over 1 percent last week amid weak earnings and global tariff fears

- Focus on Q1 results of major companies like HCL Tech, Axis Bank, and Wipro

-CPI, WPI data and updates on India-US trade deal to influence sentiment

Mumbai: In a data-heavy and event-driven week, equity market movement is expected to be guided by a mix of domestic and global cues. Analysts highlight that investor focus will largely remain on India’s first-quarter corporate earnings, the progress of ongoing India-US trade negotiations, and crucial macroeconomic indicators like inflation data.

SimranJeet Singh Bhatia of Almondz Global noted that while global developments will shape broader market sentiment, the uncertain outcome of India’s trade talks with the US continues to keep investors on edge. Amid this backdrop, market participants are hesitant to take strong bullish positions.

The Indian markets saw a downtrend last week due to global tariff concerns and weak earnings kickoff. The BSE Sensex declined by 932.42 points (1.11 percent), while the NSE Nifty shed 311.15 points (1.22 percent).

According to Ajit Mishra of Religare Broking, the upcoming earnings from major companies like HCL Tech, Tech Mahindra, Axis Bank, Wipro, and JSW Steel will be closely watched. On the macroeconomic front, key inflation data—Wholesale Price Index (WPI) and Consumer Price Index (CPI)—due on July 14, will provide important signals about the economy’s direction.

Besides corporate earnings and inflation prints, traders will monitor foreign institutional investor (FII) activity and global commodity prices, especially crude oil, for additional cues. Globally, market sentiment remains fragile due to escalating trade tensions, particularly after renewed tariff threats by US President Donald Trump targeting Canada and other allies.

Mishra added that while the market showed resilience in the initial sessions last week, profit booking in the latter half led to a weekly decline. He cautioned that global economic releases, including US inflation figures and China’s GDP data, will play a significant role in shaping short-term trends.

Siddhartha Khemka of Motilal Oswal Financial Services echoed similar views, saying markets will likely remain volatile amid stock-specific movements and external uncertainties. The ongoing Q1 earnings season, domestic inflation data, and trade negotiations with the US will be the key themes driving investor sentiment in the coming days.

(With PTI Inputs)