Equity markets are poised for a volatile week as investors look for clarity on several key developments, including the Reserve Bank of India’s (RBI) interest rate decision, fresh quarterly earnings from major companies, and updates on trade tariffs.
Analysts suggest that the combination of domestic and global triggers will determine the market mood in the coming sessions, reported PTI.
RBI Policy and Earnings to Dominate Focus
The spotlight will firmly be on the RBI’s monetary policy meeting on August 6, with traders closely watching commentary on inflation, liquidity, and growth. Ajit Mishra, SVP, Research at Religare Broking Ltd, noted that results from leading firms such as Bharti Airtel, DLF, Bajaj Auto, Hero MotoCorp, Tata Motors, State Bank of India, and Life Insurance Corporation of India will set the tone for several sectors.
Other important cues include HSBC services and composite PMI data, oil price movements, and signals from the US on trade negotiations, which could all influence short-term volatility.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, “Looking ahead, the RBI policy meeting scheduled for August 6 will be a key event, especially amid heightened volatility from both global and domestic triggers.”
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Tariff Uncertainty and Global Trends Add Pressure
Market sentiment remains fragile after US President Donald Trump announced a 25 per cent tariff on Indian goods along with penalties for trade in energy and defence items with Russia. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the unexpected tariff announcement had “impacted market sentiments in the short term”.
Last week, the Sensex fell 863.18 points or 1.05 per cent, while the Nifty lost 271.65 points or 1.09 per cent. On Friday alone, the Sensex slipped 585.67 points to close at 80,599.91, and the Nifty declined 203 points to settle at 24,565.35.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said Indian equities may “remain in consolidation mode” due to the tariff backdrop, mixed Q1 FY26 earnings, and foreign investor outflows. However, analysts believe a deal between India and the US could stabilise sentiment and help FPI flows recover once negotiations progress.
