FPJ News Service MUMBAI

The investor-sentiment will be guided by quarterly earnings from blue-chips such as Infosys and Bajaj Finance, and the outcome of India-US trade talks this week.. “Trump’s tariffs are causing ‘anxiety’. As the earnings season progresses, quarterly updates from index heavyweights will be closely monitored as strong earnings growth is vital to justify India’s premium valuations,” investment gurus, opined.

 “Domestic equity markets continued their protracted correction for the 3rd consecutive week and ended below the psychological level of 25k, weighed down by the broadly tepid start of Q1FY26 earnings, particularly from the IT and financial sectors.  “The IT sector remained under strain due to muted performance and cautious outlooks amid global demand uncertainty, while financials are also expected to report subdued results due to asset quality concerns and pressures on net interest margins.

     “In contrast, FMCG stocks outperformed, supported by encouraging growth guidance that points to a possible revival in urban consumption trends. Improved earnings momentum supported by macroeconomic tailwinds can shift investor preferences towards consumption stocks, said Vinod Nair, head of research at Geojit Investments. On the global front, markets are closely monitoring the outcome of the proposed US-India mini trade agreement. 

“A favourable resolution could strengthen the outlook for export-oriented sectors and enhance India’s relative attractiveness among emerging markets. Meanwhile, the continued moderation in inflation has bolstered expectations of an additional rate cut, which, if materialised, would be supportive of market sentiment,” Nair added.

 Siddhartha Khemka, head of research, Wealth Management, Motilal Oswal Financial Services, said, the prolonged wait for the India-US trade deal ahead of the looming August 1 tariff deadline, is keeping investors on the sidelines. Investors will also track trading activity of Foreign Institutional Investors (FIIs) and movement of crude oil prices.