Factors that will guide the markets this week

Stock markets will be driven by further developments on the US-China tariff war front along with quarterly earnings announcements from IT majors Wipro and Infosys in a holiday-shortened week, analysts said.

Global market trends and trading activity of foreign investors would also dictate market movement this week, experts noted.

Equity markets would remain closed on Monday for Dr Baba Saheb Ambedkar Jayanti and on Friday due to Good Friday.

"The upcoming week is set to be volatile for global and Indian markets, as the trade war between China and the US intensified with both countries imposing tariffs on each other, causing turmoil in the markets.

"Domestically, WPI and Consumer Price Index inflation data are set to be released.

"On the global front major macroeconomic data of US, UK and China is set to be released," Puneet Singhania, director at Master Trust Group, said.

US President Donald Trump unveiled a massive tariff plan in the first week of April.

The White House later announced a 90-day pause on “reciprocal tariffs” for most countries except China, which in turn decided to impose 125 per cent tariffs on US imports.

China on Friday upped its additional tariff on US goods to 125 per cent, retaliating to America's 145 per cent levy.

China, however, left the door open for talks between the world's two top economies as the tariff war between them continued.

"The upcoming holiday-shortened week will remain sensitive to further developments on the US-China tariff front.

"On the domestic side, the spotlight will also be on corporate earnings, with heavyweights such as Wipro and Infosys from the IT sector, along with private banking majors HDFC Bank and ICICI Bank, scheduled to announce their quarterly results," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Equity benchmarks closed last week on a subdued note, ending with modest losses amid heightened volatility.

Last week, the BSE benchmark Sensex declined 207.43 points or 0.27 per cent. The NSE Nifty dipped 75.9 points or 0.33 per cent.

The US, on April 2, announced an additional 26 per cent tariff on Indian goods entering the US.

But on April 9, the Trump administration announced the suspension of these on India for 90 days until July 9 this year.

However, the 10 per cent baseline tariff imposed on the countries will continue to remain in place.

Siddhartha Khemka, head - research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "We expect the Indian markets to remain volatile, tracking global market cues, developments on the US tariffs and the Q4 corporate earnings announcements."

Market sentiment will also be guided by the rupee-dollar trend and movement in the global oil benchmark Brent crude.

"This week brings a host of significant economic data releases from major global economies, which are expected to guide market sentiment and influence monetary policy expectations," as per a note by Bajaj Broking Research.