RBI MPC Meet, Q1 Results And Other Market Cues Likely To Impact D-Street Next Week

Equity benchmark indices ended yet another week in the red, extending their decline for the fifth straight week. US President Donald Trump’s announcement of 25 per cent tariffs on goods imported from India, mixed corporate earnings, sustained foreign fund outflows, and fears of tighter monetary policies weighed heavily on investor sentiment throughout the week.

The market witnessed frequent ups and downs during trading sessions, with both the Nifty 50 and Sensex swinging between gains and losses before eventually slipping deep into negative territory. By the end of the week, the Nifty 50 closed at 24,565.35, while the Sensex settled at 80,599.91.

Market Cues For Next Week

The next week is packed with several events that are likely to impact action on the Dalal Street.

India-US Trade Deal

In the coming week, investors will be eyeing on further developments around the India-US trade deal, which is expected to set the tone for market sentiment in the near term. Investors and analysts alike will be watching every statement and move closely, as policymakers from both nations gear up for the next round of talks.

According to a Reuters report, citing a government source, US delegation is expected to visit New Delhi later this month.

Any positive signals on tariff relaxations could help lift investor sentiment and bring some relief to the domestic market after weeks of persistent selling pressure. On the other hand, any signs of disagreement or delays in negotiations may add to the uncertainty, which could potentially drag equities further down.

RBI MPC Meeting August 2025

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will be holding meeting from August 4 to August 6. SBI Research expects the RBI to cut the repo rate by 25 basis points, citing soft inflation and global uncertainties.

The upcoming RBI MPC meeting has become important after the recent tariff shock from the US. Trade tensions, their impact on economic growth, and inflation trends are likely to shape the central bank’s tone and guidance for the coming months. Investors will also closely track the central bank’s commentary on inflation, and liquidity.

Q1 Results

As many as 809 companies are scheduled to report their quarterly earnings for the period ended June 30, 2025 (Q1 FY26).

Among the major names are Bharti Airtel, DLF, Bajaj Auto, Hero MotoCorp, Tata Motors, State Bank of India (SBI), Life Insurance Corporation of India (LIC), Marico, Britannia, BHEL, HUDCO, PVR-Inox, Raymond, Hindustan Petroleum, Shree Cements, Adani Ports, and Garden reach Shipbuilders & Engineers (GRSE).

Persistent Foreign Fund Outflows

According to National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs) have been consistently selling Indian equities in the 14 sessions out of the 15 previous sessions. Over these 15 sessions, FPIs sold shares worth Rs 27,692.31 crore. This sustained selling has kept market sentiment weak, and investors will watch closely next week to see if this trend slows or reverses.