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The coming week on Dalal Street is expected to be eventful, with analysts advising investors to monitor the progress of the US-India trade talks, the final stretch of the quarterly earnings season, tariff-related announcements, and fresh inflation data.

Over 1,400 listed firms, spanning sectors such as metals, energy, and pharmaceuticals, are set to publish their Q1 FY26 results in the days ahead. Among the big names on the results calendar for August 11 are Grasim Industries, Hero MotoCorp, and India Lease Development, reported IANS.

Inflation Data in Focus

Macroeconomic attention will turn to domestic inflation numbers, with Consumer Price Index (CPI) data due on August 12, followed by the Wholesale Price Index (WPI) on August 14. The readings are likely to influence expectations on the Reserve Bank of India’s monetary stance, especially amid ongoing global uncertainty.

Markets Extend Losing Streak

Equities concluded last week with their sixth consecutive weekly decline after US President Donald Trump unexpectedly announced a 50 per cent tariff on Indian imports. The Nifty fell nearly one per cent to 24,363, while the Sensex ended 0.9 per cent lower at 79,857.

Foreign institutional investors (FIIs) continued to offload holdings, signalling heightened risk aversion towards emerging markets. However, steady buying by domestic institutional investors (DIIs) helped cushion some of the impact.

Domestic indicators have remained comparatively upbeat, supported by robust July GST collections and improving PMI data. Yet, rising input costs, firm inflation trends, and underperformance in the banking and IT sectors could limit near-term upside.

Technical Outlook and Market Sentiment

Ajit Mishra, Senior Vice President at Religare Broking Ltd, noted: “The Nifty’s close below 24,450 has increased the risk of further correction, with immediate support placed near 24,200. On the upside, resistance is expected around the 24,600–24,800 zone, with a stronger barrier at 25,200.”

Broader markets remain more exposed to FII outflows due to their higher beta. Mishra added that any rebound may be short-lived unless there is a clear easing in trade tensions and a reversal in FII selling trends.

Defensive Strategy Favoured

Analysts suggest that investors may lean towards a defensive-to-neutral portfolio positioning. Sectors driven by domestic demand—such as infrastructure, select automotive stocks, and rural-focused FMCG—are expected to show relative strength if macroeconomic conditions remain stable.

In the current climate, market watchers recommend focusing on companies with robust domestic earnings visibility and minimal exposure to tariff risks, while keeping adequate cash reserves ready to deploy in case of deeper corrections.