Corporate earnings, a key rate decision by the Fed, foreign institutional flows and any wild moves in the forex market are likely to dictate the trend on Dalal Street this week. A slew of blue-chip companies — including Maruti Suzuki, Tata Motors, HDFC, Tata Steel, Asian Paints, Tech Mahindra and Vedanta — will report their financial results during the course of the week.
Market participants will begin the trading week by reacting to Reliance, ICICI Bank, Kotak Mahindra Bank and Infosys earnings.
The rupee — which dropped below the 80 level against the US dollar for the first time last week — will continue to be on investors' radar.
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The week that was
Indian equity benchmarks clocked their biggest weekly gains since February 2021. The Nifty Bank surged 5.9 percent for the week — its best weekly performance since January.
All of NSE's sectoral gauges rose for the week except the Nifty Pharma and the Nifty Healthcare, which took weekly losses of 0.9 percent and 0.2 percent respectively.
As many as 46 stocks in the Nifty50 basket saw weekly gains.
Dr Reddy's, HDFC Life, NTPC and Sun Pharma finished the week between 0.4 percent and 3.8 percent lower.
Broader markets mirrored the gains in headline indices.
| Index | Weekly change (%) |
| Nifty Midcap 100 | 3.7 |
| Nifty Smallcap 100 | 4.6 |
The road ahead
"A decisive break above 16,800 would keep the momentum going and help the index test the 17,400 mark. In case of any consolidation, levels of 16,250-16,500 would act as support. The banking index has also reached a trendline hurdle around 36,900, a move above which could further propel the momentum," said Ajit Mishra, VP-Research at Religare Broking.
"Although all sectors are contributing to the move, preference should be given to top performers like auto, FMCG, banking and financial spaces," he said.
Here are the key factors and events that are likely to influence Dalal Street in the week beginning July 25:
DOMESTIC CUES
Corporate earnings
| Date | Company |
| July 25 | Tech Mahindra, Tata Steel, Axis Bank, Canara Bank, Lodha, IEX, KPIT Tech and Tatva Chintan |
| July 26 | Asian Paints, Bajaj Auto, Larsen & Toubro, Tata Investment, Tata Power, Ujjivan Small Finance Bank, Union Bank, UTI AMC and South Indian Bank |
| July 27 | Maruti Suzuki, Tata Motors, Bajaj Finance, Biocon, Blue Dart, Coromandel, Dixon, Gujarat Fluorochemicals, JK Lakshmi Cement, Mahindra Lifespace, Schaeffler, UBL, VIP Industries, Clean Science and Latent View |
| July 28 | Dr Reddy's, Dr Lal PathLabs, Nestle, Vedanta, TVS Motor, PNB, SBI Cards, Bajaj Finserv, M&M Financial, Motilal Oswal Financial, MRPL, Chalet, KPR Mill and Jamna Auto |
| July 29 | HDFC, Indian Oil, Cipla, Ashok Leyland, NTPC, Piramal Enterprises, Zydus Wellness, Star Health, DLF, Deepak Fertilisers, Emami, GMR Infra, CarTrade, Cholamandalam Investment, JK Paper and CreditAccess |
| July 30 | Bank of Baroda, DCB Bank, MCX, Godfrey Phillips and IDFC First Bank |
Macroeconomic data
Official data on eight core sectors in the country — collectively known as infrastructure data — is due on Friday.
FII activity
The flow of institutional investors' money will remain in focus on Dalal Street. Foreign institutional investors (FIIs) emerged net buyers of Indian shares last week.
Their net purchases were at Rs 4,037.3 crore last week, whereas domestic institutional investors net bought equities worth Rs 940.5 crore, according to provisional exchange data.
Investors will track incoming numbers closely for more signs of a change in the trend over the past nine months, wherein FIIs have been exiting Indian equities — a primary reason behind the current correction in the market following a series of record highs till October 2021.
GLOBAL CUES
| Date | US | Europe | Asia |
| July 25 | Hong Kong trade data | ||
| July 26 | Home sales data, consumer confidence data | Minutes of last BoJ meeting | |
| July 27 | Crude oil stockpiles data, Fed rate decision | Germany consumer confidence data, France jobless claims data | |
| July 28 | GDP data, jobless claims data, consumer spending data | Eurozone economic sentiment and consumer confidence data, Germany inflation data | Hong Kong rate decision |
| July 29 | France GDP and inflation data, Germany GDP and unemployment data, Eurozone GDP and inflation data | Japan unemployment, industrial production and consumer confidence data |
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