The markets seem to be in the mood for a breather after some hectic highs in recent weeks. All eyes are now on the Reserve Bank of India’s (RBI) interest rate decision on August 8. That apart macroeconomic data, and global economic conditions along with some key earnings will impact trends in the market this week.
Foreign fund flows may also influence overall sentiment. The HSBC Purchasing Managers’ Index (PMI) for the services sector is expected to be released on Monday.
Vinod Nair, Head of Research at Geojit Financial Services, suggested that further market consolidation is likely due to high valuations, weak Q1 results, and ongoing global market adjustments. He expects the RBI to maintain the current interest rate policy.
Amid significant selling pressure, the 30-share BSE Sensex dropped 885.60 points, or 1.08 per cent, to close at 80,981.95 on Friday. The broader Nifty of the NSE fell 293.20 points, or 1.17 per cent, ending at 24,717.70.
Global oil prices and the rupee-dollar exchange rate will also influence market trends.
Along with them, the Q1 earnings this week will also drive the market trends. Companies including Bharti Airtel, BEML, ONGC, NHPC, Life Insurance Corporation of India, and MRF will report their earnings this week.