Mumbai: Indian equity markets are set for a crucial week, with investors expected to track the Reserve Bank of India's (RBI) monetary policy decision, a fresh batch of June quarter earnings, global geopolitical developments, crude oil prices and foreign institutional investor (FII) flows after benchmark indices staged a sharp rebound last week.
The market ended its recent losing streak as easing crude oil prices, improving geopolitical sentiment, strong corporate earnings for the April-June quarter and renewed FII buying boosted investor confidence.
Lower crude oil prices helped ease concerns over imported inflation, pressure on corporate profit margins and India's current account, offering support to domestic equities.
The Nifty rose 2.59 percent during the week to close at 24,383.60, while the Sensex gained 2.68 percent to end at 78,094.64. Both benchmark indices also recorded their second straight monthly gain in July.
RBI Policy In Spotlight
The key domestic trigger this week will be the RBI's Monetary Policy Committee (MPC) meeting, which begins on August 3. The policy decision and Governor's commentary will be announced on August 5.
Market participants will closely watch the central bank's assessment of inflation, economic growth, liquidity conditions and the future interest rate path, which could influence market sentiment in the near term.
Earnings Season Continues
Corporate earnings will remain another major market-moving factor, with several large listed companies scheduled to report their June quarter (Q1 FY27) results during the week.
Investors will look for management commentary on demand trends, margins and future business outlook as companies navigate an uncertain global environment.
Global Factors To Watch
Global developments are also expected to keep investors on edge amid continuing tensions in the Middle East. US President Donald Trump has warned of additional strikes on Iran as Washington intensifies efforts to reopen the Strait of Hormuz.
Crude oil prices will remain under close watch after rising more than $1 per barrel on Friday and posting their strongest monthly gains since March, driven by concerns over potential supply disruptions after reports that some oil tankers reversed course in the Strait of Hormuz.
Technical Outlook
According to market analysts, a decisive close above the 24,500-24,600 zone on the Nifty could extend the rally towards the 25,200 level.
On the downside, immediate support is seen around 24,100, while the stronger support zone lies between 23,600 and 23,800.
