Corporate earnings, FII trading and other major triggers to drive markets next week

The Indian share markets will be driven by many triggers next week, the US Fed interest rate decision, ongoing quarterly earnings, macroeconomic data, and FII trading activity being some of the major triggers as per analysts.

Investors would also track global market trends and the movement in global oil prices for further cues.

"This week, the focus will shift to global cues, particularly the US markets. The US Federal Reserve is set to announce its interest rate decision on July 31, which will be crucial as the market anticipates a potential rate cut soon this year. Additionally, other macroeconomic data from the US and China will be closely monitored," said Santosh Meena, Head of Research, Swastika Investmart Ltd. 

Meena added on the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results.

Echoing a similar view, Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said, "The outlook for the market will be guided by major domestic and global economic data such as India's infrastructure output, manufacturing PMI, China manufacturing PMI, BoE (Bank of England) interest rate decision, US nonfarm payrolls, and Federal Reserve press conference."

Global markets

"Moving forward, the direction of the domestic market will likely be influenced by the progress of earnings season. Additionally, global economic updates, including the US Fed and BoE monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends," said Vinod Nair, Head of Research, Geojit Financial Services.

Similarly, Alex Volkov, Market Analyst at VT Markets believes the US FOMC Meeting, the Q2 2024 earnings season, and the Bank of Japan interest rate decision will be the important triggers for global markets next week.

"The market is fully priced for a 25 bp rate cut in September, with 66 bps of rate cuts expected before the end of the year. This meeting could signal that a first-rate cut is imminent, depending on the data," said Volkov. 

Volkov added the US Q2 2024 earnings season continues with major reports from tech giants like Microsoft, Meta, and Apple. These earnings reports will provide crucial insights into the health of the tech sector and broader market trends.

Further, as per him, the Bank of Japan’s interest rate decision, scheduled for Wednesday, is another key event. 

"The upcoming meeting is expected to outline a detailed bond tapering plan, with market participants anticipating a reduction in monthly government bond purchases from six trillion yen to around three or four trillion yen," said Volkov.

Last week was marked by volatility, with profit-taking. The BSE benchmark rallied 728.07 points or 0.90 per cent and the Nifty climbed 303.95 points or 1.23 per cent last week.

"Global investors will in the coming week look out for earnings from the US market's biggest tech companies, a Federal Reserve policy meeting and closely watch employment data that could determine the near-term trajectory of US stocks," Deepak Jasani, Head of Retail Research, HDFC Securities, said.

(With inputs from agencies.)

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