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Stock Market News: Key Factors Expected To Impact Trade On D-Street This Week

In the week ahead, market participants will monitor derivative expiries, macroeconomic indicators, and corporate earnings announcements and their impact on trading activity on D-street:

Banking stocks provided the strongest support to the market. (AI-generated) Photo: ChatGPT
Summary
  • US Fed interest decision and hawkish commentary impact markets.

  • Triple derivatives expiry will inject volatility into the markets.

  • Rising Brent crude oil prices will pressure Indian equities.

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D-street investors are readying themselves for a highly eventful week starting July 27. After consecutive losing sessions, investors are looking ahead to see how domestic and global triggers are set to affect trade.

On July 24, the Sensex finished the session at 76,059.77, down by 331.62 points or 0.43 per cent. On the other hand, Nifty 50 finished the session at 23,767.45, down 102.15 points or 0.43 per cent.

In the week ahead, market participants will monitor derivative expiries, macroeconomic indicators, and corporate earnings announcements and their impact on trading activity on D-street:

Triple Derivatives Expiry

In the upcoming week, investors will navigate the expiration of the Nifty 50 weekly contracts, the Nifty 50 July monthly contracts, and the Bank Nifty July contracts on July 28. The triple expiry is likely to inject volatility into the markets as institutional investors will try to roll over positions to the August series.

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US Federal Reserve

The United States Federal Reserve is scheduled to meet on July 28 and 29. Notably, the interest decision will be announced on July 29. Hawkish commentary from the Federal Open Market Committee (FOMC) can affect emerging markets globally.

Crude Oil Prices

D-street is also expected to factor in the rising Brent crude oil prices. The rise in prices is expected to act as a major headwind for the market. Typically, higher crude prices pressure the Indian rupee and inflate the national import bill, triggering further equity selloffs by foreign investors.

Institutional Flows

In the institutional space, Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) activity is set to affect market direction. In recent sessions, foreign funds have maintained a cautious stance, pulling capital out of domestic equities frequently in response to elevated global bond yields and geopolitical uncertainties.  However, robust buying from domestic institutions has consistently provided a much-needed cushion to the benchmark indices, preventing a steeper correction. So far in July, DIIs have remained net buyers, purchasing equities worth Rs 29,711.59 crore; on the other hand, FIIs have net sold equities worth Rs 11,728.95 crore.

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Upcoming Major Q1 Earnings

In the upcoming week, stock-specific action is set to be driven by corporate earnings announcements.  On July 27, heavyweights like Bharat Electronics Ltd, Coal India, Tata Power, and Coforge will announce their results. In the rest of the week, companies such as Larsen and Toubro, Hindustan Unilever, Indian Oil Corporation, Shree Cement, and NALCO will announce their earnings for Q1FY26.

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