Q4 earnings, FII activity, global trends likely to drive markets this week

Stock markets will be mainly driven by quarterly earnings by corporates, foreign fund flows and global trends this week, analysts said.

Updates on global trade deals and their impact on world markets will also be closely tracked, experts noted.

"As the India-Pakistan conflict now stabilized and all major geopolitical events behind, investors' focus is likely to shift towards assessing the ongoing Q4 corporate earnings season.

Additionally, there is growing optimism around the possibility of an early India-US trade deal, which could provide further support to market sentiment," Puneet Singhania, Director at Master Trust Group, said. 

Domestic developments and key global economic data releases will also influence investor flows and overall market direction, he added.

India is willing to cut 100 per cent tariffs on American goods, US President Donald Trump claimed once again while saying that a trade deal between New Delhi and Washington is coming soon.

Power Grid Corporation of India, Hindalco Industries, ONGC, Sun Pharmaceutical Industries, ITC and JSW Steel will announce their earnings this week.

"With no major global or domestic events scheduled, markets focus is expected to shift towards domestic earnings and high-frequency economic data for directional cues. Updates on global trade deals and their impact on global markets will also be closely tracked," Ajit Mishra SVP, Research, Religare Broking Ltd, said.

Participants will continue to monitor foreign capital flows, which have played a significant role in sustaining the current rally, he said.

"On the corporate earnings front, several prominent companies, including ONGC, ITC, Hindalco, JSW Steel and Power Grid are set to announce their quarterly results, which could influence near-term market trends," Mishra added.

Last week, the BSE benchmark gauge jumped 2,876.12 points or 3.61 per cent, and the Nifty surged 1,011.8 points or 4.21 per cent.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services, said, the focus will also remain on the ongoing Q4 earnings season.

"FIIs (Foreign Institutional Investors)who were sellers in the first three months of 2025 having sold equity for Rs 1,16,574 crore during this period turned buyers in April. This change in FII strategy from selling to buying accelerated in May with big buying of Rs 23,778 crore through 16th May.

"With the global trade scenario improving after the pause in trade war between the US and China and the end of the India-Pak conflict, the investment scenario has improved," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.