Summary of this article
Reliance Industries and several large companies will announce June quarter earnings
Inflation data from India and the US will be closely watched
Crude oil prices and Iran-US tensions may keep markets volatile
Indian stock markets are set for a busy week as investors track June quarter earnings, key domestic and global economic data, and developments in the Iran-US conflict. After snapping a four-week winning streak, benchmark indices will look for fresh cues to determine their next move.
Markets remained volatile last week due to rising geopolitical tensions in West Asia and a sharp rebound in crude oil prices. However, broader markets continued to outperform, reflecting continued interest in select stocks.
In the week ahead, corporate earnings, India's inflation data, crude oil prices, global economic indicators and geopolitical developments are expected to be the main factors driving market sentiment.
Stock Market Next Week: Key Developments To Track
The coming week is packed with events that could drive market sentiment. Investors will track Q1 earnings, inflation data from India and the US, developments in the Iran-US conflict, China's economic data, and movements in crude oil prices.
Foreign institutional investor (FII) and domestic institutional investor (DII) flows, the rupee, the dollar index and bond yields will also remain in focus as markets look for fresh direction.
Q1 FY27 Earnings
The June quarter earnings season will gather momentum this week, with a host of large companies set to announce their results. Investors will also closely watch management commentary for cues on demand, margin trends and the outlook for the rest of the financial year.
The companies set to announce their Q1 FY27 earnings in the coming week include Reliance Industries, HCL Technologies, Tech Mahindra, Wipro, JSW Steel, Jio Financial Services, Bharat Heavy Electricals (BHEL), Polycab India, Havells India, Tata Elxsi, Samvardhana Motherson International, HDFC Asset Management, HDFC Life Insurance, ICICI Lombard General Insurance, ICICI Prudential Life Insurance, Union Bank of India, Federal Bank, RBL Bank, Angel One, 360 One WAM and Oberoi Realty.
India Inflation Data
June consumer price index (CPI)-based inflation, releasing on July 13, will be one of the key domestic data releases this week. Investors will watch the figures closely after retail inflation rose to 3.93 per cent in May from 3.48 per cent in April, though it remained below the Reserve Bank of India's (RBI) 4 per cent target.
The data comes amid concerns that delayed monsoon rains could push up food prices in the coming months.
Along with CPI, investors will also track June wholesale price inflation (WPI), releasing on July 14, which measures price movements at the producer level.
WPI accelerated sharply in May, driven by higher manufacturing and food prices. Investors will watch whether those pressures continued during June and whether businesses are likely to pass on higher costs to consumers.
“Domestically, investors will closely monitor June CPI inflation, WPI inflation, unemployment data, trade balance figures, and the latest foreign exchange reserves. These releases will provide valuable insights into inflation trends, economic momentum, and external sector stability,” said Ajit Mishra, senior vice president, research at Religare Broking.
US-Iran War Updates
Developments in the Iran-US conflict will remain a key market trigger this week. The recent flare-up has pushed Brent crude above $76 a barrel.
For India, higher crude oil prices are a concern as the country imports most of its oil. A sustained rise in prices could increase inflation and the import bill, while any further escalation in the conflict may weigh on investor sentiment.
US Economic Data
Global markets will take cues from key US economic data this week. Investors will watch June core inflation data on July 14, followed by retail sales and weekly jobless claims on July 16, for signals on the health of the US economy and the Federal Reserve's interest rate outlook.
The data could influence the dollar, US bond yields and global investor sentiment, and can have a spillover effect on Indian markets.
China Economic Data
Investors will also track China's second-quarter gross domestic product (GDP) and June industrial production data on July 15 for clues on the strength of the world's second-largest economy. The data could influence global market sentiment and sectors such as metals and commodities.
