Markets to focus on Q1 earnings, RBI interest rate this week: Analysts

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The RBI interest rate decision, industrial production data for June and the ongoing quarterly earnings from corporates would largely drive the stock markets this week, analysts said.

Other major factors such as global market trends, the movement of oil prices and the trading activity of foreign investors would also influence trading, they added.

"The market will have an eye on the RBI Monetary Policy Committee (MPC) meeting, which will be announced on August 10, 2023. We are heading towards the last batch of Q2 earnings of key companies such as Adani Ports, Coal India, Hero MotoCorp, Hindalco and ONGC, among others, which will lead to stock-specific movement," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

On the macro front, market participants will be closely observing key events like industrial production and manufacturing production data, which will be released on August 11, Gour said.

Trend in global stock markets, movement of the dollar index, the rupee against the dollar, and crude oil prices will also dictate the trend, he added.

"The market will react to the upcoming RBI policy, ongoing Q1 FY24 earnings season, crude oil, US inflation data, US initial jobless claims, and UK GDP Data this week," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

Investors would also focus on foreign institutional investors' (FIIs) trading activity going ahead after they remained net sellers in the capital market last week.

"This week would be crucial from the domestic point of view as RBI is set to announce its interest rate decision. Thus, markets are likely to move in a broader range with some volatility. Interest-sensitive sectors are expected to remain in focus," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.

Last week, the BSE benchmark fell by 438.95 points or 0.66 per cent, and the Nifty dipped 129.05 points or 0.65 per cent.

"Negative news about the US ratings downgrade, weak factory activity data from the Eurozone and China, and prolonged FII selling triggered by rising US bond yields caused widespread worries across the globe," said Vinod Nair, Head of Research at Geojit Financial Services.

Investors are now awaiting the upcoming MPC meeting outcome, Nair added.