The RBI's interest rate decision, US-China trade conflict and quarterly earnings would influence trading in the equity markets this week, say analysts.

Participants will also keep an eye on taxation issues following reports that the Prime Minister's Office and the finance ministry have held talks regarding tax surcharge on FPIs announced in the Budget.

However, the key trigger this week is likely to be the Reserve Bank's three-day policy meeting, beginning Monday (August 5).

The central bank is expected to cut the benchmark interest rate for the fourth time in a row to boost the economy at time when key indicators are pointing towards a slowdown, experts said.

"The market is now awaiting the RBI meet which is scheduled this week," said Mustafa Nadeem, CEO, Epic Research.

PMI data for the services sector is due on Monday, which would also influence trading sentiment, according to marketmen.

According to Arun Thukral, MD and CEO, Axis Securities, "The recent correction has been driven by various factors -- global weakness, selling by FPIs along with signs of a slowdown in domestic economy. Having breached the psychologically crucial levels, markets are expected to be volatile in the near term."

Also, the ongoing results season will continue to determine the market trend.

Cipla, HCL Technologies Limited, Lupin, M&M, Tata Steel, Hexaware Technologies and GAIL India are among the major corporates scheduled to announce their results this week.

"The BSE-30 share index declined 2.1 per cent this week led by weak domestic and global cues. Commentary of the US Federal Reserve on the future rate cut, weak underlying trends in quarterly results, slump in automobile sales dented investor sentiments," said Sanjeev Zarbade, VP PCG Research, Kotak Securities.

Global markets were rattled last week after US President Donald Trump announced fresh tariffs on Chinese imports, which Beijing vowed to retaliate.

Over the last week, the Sensex lost 764.57 points or 2.01 per cent.