Factors like the upcoming US Federal Reserve meeting, ongoing corporate earnings, and release of important economic data such as Industrial Production (IIP) and HSBC Manufacturing PMI will play a major role in shaping Indian stock market sentiment next week.
On Friday, the markets ended lower for the second straight session, with both benchmark indices -- the Sensex and Nifty -- posting steep losses.
The Sensex fell 786 points intra-day to 81,397.69, while the Nifty slipped nearly 1 per cent to touch 24,806.35.
The broader market also witnessed selling, with mid-cap and small-cap indices dropping up to 2 per cent.
Looking ahead, global developments will also be crucial. The US Federal Reserve will hold its policy meeting on July 29–30.
Most traders expect the Fed to keep interest rates unchanged, but any comments on inflation or future policy moves will be closely watched by markets worldwide.
On the trade front, the Ministry of External Affairs said India and the US are working on the first phase of a Bilateral Trade Agreement to improve market access and reduce tariff barriers.
Back home, earnings from key companies such as IndusInd Bank, Tata Steel, ITC, Sun Pharma, and Maruti Suzuki India are expected next week.
Their performance will give investors more clarity on sectoral strength and overall corporate health, as per the experts.
As the new month begins, investors will also keep an eye on economic indicators. The Industrial Production (IIP) data and HSBC Manufacturing PMI, both due on August 1, could provide fresh cues on the health of the Indian economy.
According to experts, the market is likely to remain volatile next week, with investors watching for cues from global central banks, earnings reports, and domestic economic data.
Meanwhile, in the previous week, the benchmarks ended the week lower, marking the fourth consecutive weekly loss.
The Nifty closed at 24,837.00, while the Sensex settled at 81,463.09.
(With inputs from IANS)
