Market Braces for Turbulence Amid Key Economic Indicators

Stock markets are gearing up for a potentially turbulent week, with investors closely monitoring the impact of US tariffs, the tail end of Q1 earnings season, and crucial inflation data. The trading week will be shortened due to the Independence Day holiday on Friday.

Focus on Domestic and Global Economic Data

Attention this week will be on India's Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data. Additionally, global developments, particularly US-India trade talks, are under the spotlight as discussions over a trade agreement continue.

Earnings Season Nears Its End

While the earnings season is winding down, significant results from companies like Ashok Leyland, ONGC, IOC, Hindalco Industries, and BPCL are anticipated to drive stock-specific movements.

Analysts Weigh In

Ajit Mishra, SVP of Research at Religare Broking Ltd, emphasized the importance of domestic CPI and WPI inflation data and the ongoing US-India trade discussions. Santosh Meena, Head of Research at Swastika Investmart, highlighted the need to monitor trade negotiations, macroeconomic data, earnings, and Foreign Institutional Investor (FII) flows.

Global Economic Data Releases

Key economic data from India, the US, and China, including US inflation figures on August 12, are expected to significantly influence market movements.

Market Sentiment and Foreign Investments

Foreign investors have withdrawn nearly Rs 18,000 crore from Indian equities this month, contributing to market volatility. Siddhartha Khemka of Motilal Oswal Financial Services Ltd advised investors to focus on domestic-oriented themes in this volatile environment.

Recap of the Past Week

The market sentiment remained cautious as benchmark indices recorded their sixth consecutive week of declines, influenced by selling pressure and profit-taking. The BSE Sensex and NSE Nifty both closed lower, impacted by the announcement of a 50% tariff on Indian goods by the US President and the RBI's decision to maintain the policy repo rate at 5.50%.