Mumbai: This week, India’s stock markets will be shaped by a mix of local and global factors. Analysts say the most important triggers will be inflation numbers, updates on trade negotiations, the last set of quarterly earnings, and the investment activity of foreign investors.
The trading week will be shorter, as markets will be closed on Friday for Independence Day.
Inflation Data in Focus
On August 12, both India and the United States will release key inflation numbers. India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) data will give investors a sense of price trends in the economy. The US inflation data is also being closely watched, especially because of recent higher tariffs in global trade.
According to Santosh Meena, Head of Research at Swastika Investmart, these numbers could have a strong influence on market sentiment. “Any updates from India-US trade talks will be a primary market driver,” he said.
Trade Relations and Global Trends
Developments in trade relations between India and the US will remain in the spotlight as discussions over a potential trade agreement continue. Global market trends will also guide investor mood, especially with major economies like China releasing important data this week.
Ajit Mishra, Senior VP at Religare Broking, pointed out that trade-related updates and global cues could add to market volatility.
Earnings Season Nears Completion
The first quarter earnings season is almost over, but some important companies are still due to announce results, including Ashok Leyland, ONGC, IOC, Hindalco Industries, and BPCL. These announcements could lead to sector-specific market movements.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said, “We expect equities to remain in a consolidation phase until there’s clarity on tariffs. In this volatile environment, investors may focus on domestic themes, while traders should keep positions light.”
FII Outflows Add Pressure
Foreign Institutional Investors (FIIs) have withdrawn nearly Rs 18,000 crore from Indian equities so far in August. This selling trend has added to market weakness, which has already seen six consecutive weeks of declines. Last week, the BSE Sensex fell by 742.12 points (0.92 percent), and the NSE Nifty dropped by 202.05 points (0.82 percent).
