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Domestic equities are expected to take their cues this week from a slew of quarterly earnings reports, global developments, and the outcome of the India–US trade negotiations, according to analysts.

Market sentiment will likely be shaped on Monday by investors' reaction to the June quarter results of heavyweight firms including Reliance Industries, HDFC Bank and ICICI Bank, reported PTI.

Reliance Industries, India’s most valuable company, reported a record-breaking quarterly net profit of Rs 26,994 crore on Friday, registering a year-on-year growth of 78.3 per cent. The robust numbers were largely supported by its consumer-focused businesses and investment-related gains.

Meanwhile, HDFC Bank’s consolidated net profit for the June quarter saw a 1.31 per cent decline to Rs 16,258 crore. In contrast, ICICI Bank posted a healthy 15.9 per cent jump in consolidated net profit, reaching Rs 13,558 crore for the same period.

"In the sessions that follow, several prominent companies including Infosys, Dr Reddy's Laboratories, Bajaj Finance, Nestle India are scheduled to announce their quarterly results. Globally, market participants will monitor trade deal updates, which could influence FII flows and currency movements. At the same time, uncertainty persists as global markets recalibrate expectations for Federal Reserve rate cuts, amid sticky inflation and trade-related tensions," said Ajit Mishra, SVP – Research, Religare Broking Ltd.

US Trade Talks and Fed Expectations to Influence Global Sentiment

Apart from domestic earnings, attention is also turning to international developments. The fifth round of bilateral trade discussions between India and the US concluded on July 17 in Washington. With both nations pushing to finalise an interim trade pact before the August 1 deadline, market participants are likely to remain watchful. The expiry of the current suspension on Trump-era tariffs—26 per cent on certain Indian exports—adds urgency to the proceedings.

"The prolonged wait for the India–US trade deal ahead of the looming August 1 tariff deadline, is keeping investors on the sidelines", said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Additionally, investor mood will be influenced by foreign institutional investor (FII) activity, movement in crude oil prices, and any further cues on potential interest rate adjustments by the US Federal Reserve. Sticky inflation and trade frictions continue to cloud expectations of a rate cut in the near term.

Looking ahead, several other major firms, including Infosys, Dr Reddy's Laboratories, Bajaj Finance, Nestlé India, UltraTech Cement and Eternal are slated to post their results, which could lend further direction to the markets.

In the week gone by, benchmark indices showed weakness. The BSE Sensex slipped 742.74 points or 0.90 per cent, while the NSE Nifty lost 181.45 points or 0.72 per cent.