Stock markets to track crude oil prices, global trends

Trading sentiment in the stock market this week will depend on crude oil prices, global trends and the start of corporate earnings season with IT bellwether TCS reporting its June-quarter financial results on July 9, analysts said.

Besides, the advancement of the southwest monsoon and trading activity of foreign investors would also influence market trading, they added.

“Investors will closely monitor the quarterly results of TCS on July 9, with particular focus on management commentary regarding demand trends, discretionary spending, and AI-led business opportunities,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

Last week, the BSE benchmark Sensex climbed 663.44 points, or 0.86 per cent, and the NSE Nifty increased by 214.85 points, or 0.89 per cent.

“Domestically, investor attention will centre on the commencement of the Q1 FY27 earnings season from July 9, with the initial batch of corporate earnings and management commentary expected to provide valuable insights into demand conditions, margin trends, and earnings visibility,” Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said.

Additionally, the progress of the southwest monsoon and kharif sowing will remain important indicators for rural demand, inflation expectations, and overall economic growth, he noted.

Meanwhile, the next round of technical talks between the US and Iran is expected to take place on July 11, although a final decision on the venue has yet to be announced.

“Crude oil prices will remain in focus after stabilising around $68-69 a barrel as concerns over disruptions to shipments through the Strait of Hormuz eased. Sustained stability in energy prices would be supportive for India’s inflation outlook and external balances,” Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.

Following softer-than-expected US labour market data, which reinforced expectations of a less hawkish Federal Reserve, investors will closely scrutinise the minutes of the Fed’s June policy meeting for further insights into policymakers’ assessment of the economic outlook and the likely trajectory of interest rates, he added.

Looking ahead, the market’s direction will be shaped by the US Federal Open Market Committee (FOMC) minutes, the start of the domestic earnings season and monsoon progress, Vinod Nair, Head of Research, Geojit Investments Limited, said.