Fed rate decision, Q1 earnings to drive stock markets this week: Analysts

The US Fed interest rate decision, ongoing quarterly earnings, macroeconomic data and FII trading activity are the major triggers that will drive stock markets this week, analysts said.

Investors would also track global market trends and the movement in global oil prices for further cues.

"This week, the focus will shift to global cues, particularly the US markets, Santosh Meena, Head of Research, Swastika Investmart Ltd said. The US Federal Reserve is set to announce its interest rate decision on July 31, which will be crucial as the market anticipates a potential rate cut soon this year. Additionally, other macroeconomic data from the US and China will be closely monitored. On the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results," Meena said.

GAIL, Adani Power, Bank of Baroda, BHEL, Coal India, M&M, Maruti, Tata Steel, Adani Enterprises and Tata Motors are among the companies which will announce quarterly results this week.

"The outlook for the market will be guided by major domestic and global economic data such as India's infrastructure output, manufacturing PMI, China manufacturing PMI, BoE (Bank of England) interest rate decision, US nonfarm payrolls and Federal Reserve press conference," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

"Moving forward, the direction of the domestic market will likely be influenced by the progress of earnings season. Additionally, global economic updates, including the US Fed and BoE monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends," said Vinod Nair, Head of Research, Geojit Financial Services.

Last week was marked by volatility, with profit-taking. The BSE benchmark rallied 728.07 points or 0.90 per cent and the Nifty climbed 303.95 points or 1.23 per cent last week.

"Global investors will in the coming week look out for earnings from the US market's biggest tech companies, a Federal Reserve policy meeting and closely watch employment data that could determine the near-term trajectory of US stocks," Deepak Jasani, Head of Retail Research, HDFC Securities, said.