Factors that will guide the markets this week

Equity markets will take cues from global trends and trading activity of foreign investors, while in the latter part of the week the first quarter earnings from IT majors TCS and HCL Technologies would guide investor sentiments, analysts said.

Markets may consolidate after the record rally last week, experts added.

"On the domestic front, the Q1 earnings season begins this week. Key companies such as TCS and HCL Technologies will release their earnings on July 11 and 12, 2024, respectively.

"Additionally, India's Union budget in July is a key event, with hopes pinned on growth-oriented policies and development of monsoon season, which will also be significant points of interest for investors and traders," said Pravesh Gour, senior technical analyst, Swastika Investmart Ltd.

The US Federal Reserve Chair Jerome Powell's testimony is scheduled for July 9, 2024, he added.

"Furthermore, the activities of both foreign and domestic institutional investors (FII & DII) will be tracked, along with crude oil prices, to gauge overall market sentiment," Gour said.

The BSE benchmark Sensex hit its all-time high of 80,392.64 on July 4, while the Nifty reached its lifetime peak of 24,401 on the same day.

"The outlook for the market will be guided by major domestic and global economic data such as India's CPI, industrial production, Fed speech, UK GDP data, US core CPI inflation and initial jobless claims," Arvinder Singh Nanda, senior vice president, Master Capital Services Ltd, said.

Last week, the BSE benchmark jumped 963.87 points or 1.21 per cent, and Nifty gained 313.25 points or 1.30 per cent.

"As the market enters the earnings season, starting with IT bellwether TCS, expectations are optimistic for better results.

"Investors will closely watch management commentary for insights into the sector's outlook," said Vinod Nair, head of research, Geojit Financial Services.

"This week, we expect stock and sector-specific action as the market starts taking cues from Q1 FY25 earnings.

"On the macro front, investors will look out for inflation data that will be released by India, the US, and China," said Siddhartha Khemka, head - retail research, Motilal Oswal Financial Services Ltd.

Looking forward, markets' direction will largely be influenced by upcoming earnings reports, said Ajit Mishra, SVP, Research, Religare Broking Ltd.