The stock market is expected to remain volatile for the next five days. Analysts believe that this week, starting July 28th, could be filled with fluctuations due to domestic and global events. Last week, the Sensex fell by nearly 294 points, and the Nifty also recorded a decline of 131 points. This week begins with several major signals, including companies' Q1 results, the Federal Reserve's interest rate meeting, and the timeline related to Trump tariffs.
All Eyes on First Quarter Results
The market will be most affected by the quarterly results of some major companies. This week, companies like IndusInd Bank, Asian Paints, NTPC, Tata Steel, Hindustan Unilever, Mahindra & Mahindra, Maruti Suzuki, Sun Pharma, and ITC will present their April-June quarter results. Investors will be closely watching these results, as the performance of these companies could determine the direction of the market.
US Fed Decision and GDP Figures Also in Focus
Globally, investors are focused on the US Federal Reserve meeting, where a decision will be made regarding interest rates. In recent months, the Fed has kept rates stable, but due to fluctuations in inflation data, there is renewed discussion in the market about a change in rates. In addition, US GDP figures will also be released this week, which could determine the direction of markets around the world.
All Eyes on August 1st
The date of August 1st is considered very important. On this day, the suspension period for the Trump tariffs imposed by the United States expires. This tariff was applicable to several countries, including India, and was partially suspended in 2020. Now, investors will be watching the US's next strategy regarding this tariff. In addition, the growing geopolitical tensions between Thailand and Cambodia could also affect the market's movement.
Auto Sales and IIP Figures Will Also Give Direction to the Market
At the beginning of the new month, key economic data such as the Index of Industrial Production (IIP) and Manufacturing PMI will be released. Along with this, the auto sales figures for the month of July will also be revealed. All these figures will provide a glimpse of the country's economic situation, which could build or break investors' confidence.
What Will Foreign Investors Do, Everyone's Eyes Are On
The activities of FIIs, i.e., Foreign Institutional Investors, will also be very important for the market. Several factors, such as the movement of the rupee against the dollar, US-China trade relations, and global tensions, will determine the mood of FIIs. A mixed trend has been observed from FIIs so far in July, but it will be interesting to see whether they continue buying or book profits in August.
Crude Oil Prices and Dollar-Rupee Will Also Show Effect
Crude oil prices have been volatile for the past few weeks. Due to disruptions in global supply, the policies of OPEC countries, and war-like situations, crude prices are unstable. This has a direct impact on India's current account deficit and inflation. Similarly, the movement of the rupee against the dollar can also play a major role in determining market sentiment.
Action Will Be Seen in Small Stocks Too
This week, not only large stocks but also midcap and smallcap stocks may see activity. Activity may increase in stocks related to several sectors such as auto, banking, FMCG, and pharma companies. Retail investors have a special focus on these stocks, and their movement also determines the direction of the entire market.
The Market Will Show Strength For This Week
Overall, this week could prove to be very important for the stock market. Whether it is the quarterly results of companies, the Fed's decision, the US tariff deadline, or domestic data, every factor can shock the market or give it a boost. In such a situation, traders and investors will keep an eye on every update.
