Markets set for volatile week with key results, fed decision and trade talks ahead

New Delhi: Stock markets are expected to face a volatile week ahead, with a packed schedule of quarterly earnings from major companies, the US Federal Reserve’s interest rate decision, and foreign investor trading activity likely to influence investor sentiment, analysts said.

In addition to corporate results, macroeconomic data announcements, monthly auto sales numbers, and global market cues will play a crucial role in guiding domestic equity movements, they noted.

Markets will also closely monitor developments linked to the August 1 trade deal deadline and geopolitical tensions between Thailand and Cambodia. August 1 also marks the end of the suspension period for Trump-era tariffs on several countries, including India.

“The start of the new month will bring attention to key economic data, including Industrial Production (IIP) and HSBC Manufacturing PMI on August 1. Additionally, monthly auto sales figures will be closely monitored. The scheduled expiry of the July derivatives contracts may add further volatility to the markets,” said Ajit Mishra, SVP, Research, Religare Broking.

As the earnings season progresses, results from major companies such as IndusInd Bank, Asian Paints, NTPC, Tata Steel, Hindustan Unilever, Mahindra & Mahindra, Maruti Suzuki, Sun Pharma, and ITC will be keenly tracked for sectoral insights and corporate performance, he added.

On the global front, investors will keep a close eye on the US Fed’s interest rate decision, GDP growth numbers, and updates on trade negotiations tied to the Trump tariff deadline, as these factors could significantly influence foreign institutional investor (FII) flows, Mishra noted.

Movements in the rupee against the US dollar and crude oil prices will also remain key triggers for the market.

“Looking ahead, all eyes are now on the upcoming Q1 earnings reports from several key companies. Major names like Bharat Electronics, IndusInd Bank, Asian Paints, Tata Steel, Mahindra & Mahindra, Coal India, Hindustan Unilever, Maruti Suzuki, and ITC are set to announce their results this week. Their performance will be crucial in determining whether markets can find support or continue to trend lower in the near term,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.

He added that foreign fund flows and any significant updates on the India-US trade front will be closely monitored for further direction.

Last week, the BSE Sensex declined by 294.64 points or 0.36%, while the Nifty fell 131.4 points or 0.52%.

“The Indian stock market continued its downward trajectory for the fourth consecutive week, marking the longest losing streak for the Nifty since October 2024. Investor sentiment remained weak, primarily due to the absence of strong domestic triggers, tepid corporate earnings for the June quarter, and persistent selling by foreign institutional investors (FIIs),” Gour added.

Siddhartha Khemka, Head, Research, Wealth Management, Motilal Oswal Financial Services, said, “We expect markets to remain in consolidation mode amid continued uncertainty around the India-US trade deal, a mixed Q1 FY26 earnings season so far, and intensifying FII outflows.”