Equity markets are set for a data-heavy and event-driven week as investors brace for updates on the US&ndash;India trade standoff, key inflation figures, and the final leg of Q1 FY26 earnings. Analysts caution that tariff tensions and global risk aversion could weigh on sentiment, while select domestic sectors may offer pockets of resilience.
More than 1,400 companies across metals, energy, and pharmaceuticals will announce quarterly results in the coming days, including Grasim Industries, Hero MotoCorp, and India Lease Development on August 11. The corporate reporting cycle will largely wrap up by next week.
On the macro front, Consumer Price Index (CPI) inflation data is due on August 12, followed by Wholesale Price Index (WPI) inflation figures on August 14. These releases will be closely monitored for signals on monetary policy and cost pressures.
The previous week saw markets extend their losing streak to six weeks after US President Donald Trump announced a surprise 50% tariff on Indian goods. The Nifty fell 1% to close at 24,363, while the Sensex ended at 79,857. Persistent selling by foreign institutional investors (FIIs) reflected broader risk-off sentiment, although domestic institutional investors (DIIs) cushioned the fall.
Domestic resilience has been underpinned by robust July GST collections and upbeat PMI readings, but rising input costs, stubborn inflation trends, and weakness in banking and IT may limit upside momentum. Technical charts suggest immediate support for the Nifty at 24,200, with resistance around 24,600&ndash;24,800, and a stronger ceiling at 25,200.
Broader markets remain vulnerable due to their higher sensitivity to FII outflows. Analysts advise a defensive-to-neutral portfolio stance, favouring companies with strong domestic earnings visibility and limited tariff exposure. Sectors such as infrastructure, select auto makers, and rural-focused FMCG are seen as better positioned if macroeconomic stability persists.

Markets Brace for Tariffs, Inflation Cues

Earnings season wrap-up and macro cues to guide market sentiment amid trade tensions

Markets Brace for Tariffs, Inflation Cues

Earnings season wrap-up and macro cues to guide market sentiment amid trade tensions

August 10, 2025 | 10:30 IST