Q1 earnings, India-US trade talks outcome to drive market sentiments this week

New Delhi: Trading sentiment in the stock market this week will be guided by quarterly earning announcements from blue-chips such as Infosys and Bajaj Finance, the outcome of India-US trade talks and global cues, analysts said.

Markets may on Monday react to the quarterly results of three heavyweights - Reliance Industries, HDFC Bank and ICICI Bank, an expert said.

India's most valuable company Reliance Industries on Friday reported its highest-ever quarterly profit of Rs 26,994 crore for the June quarter, reflecting a growth of 78.3 per cent over the year-ago period, driven by consumer businesses and investment sales.

"All eyes will remain on the ongoing earnings season, with a series of major results lined up. Investors will first react to the results of three heavyweights —Reliance, HDFC Bank, and ICICI Bank —during early trades on Monday. In the sessions that follow, several prominent companies including Infosys, Dr Reddy's Laboratories, Bajaj Finance, Nestle India are scheduled to announce their quarterly results.

"Globally, market participants will monitor trade deal updates, which could influence FII flows and currency movements. At the same time, uncertainty persists as global markets recalibrate expectations for Federal Reserve rate cuts, amid sticky inflation and trade-related tensions," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Meanwhile, HDFC Bank on Saturday posted 1.31 per cent decline in its consolidated net profit to Rs 16,258 crore for the June 2025 quarter.

ICICI Bank reported a 15.9 per cent jump in consolidated net profit to Rs 13,558 crore for the quarter.

"As we step into a new week, the market is brimming with various domestic and global macroeconomic indicators that are expected to sustain its momentum. On the domestic front, investors will keep a close eye on the Q1 earnings of key companies such as Eternal, UltraTech Cement, Infosys, Bajaj Finance, Nestle among others, as they are scheduled to announce their financial results," Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said.

India and the US teams concluded the fifth round of talks for the proposed bilateral trade agreement (BTA) in Washington on July 17. The negotiations were held for four days (July 14-17) in Washington.

These deliberations are important as both sides are looking at finalising an interim trade deal before August 1, which marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India (26 per cent).

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, the prolonged wait for the India–US trade deal ahead of the looming August 1 tariff deadline, is keeping investors on the sidelines.

Investors will also track trading activity of Foreign Institutional Investors (FIIs) and movement of crude oil prices.

Last week, the BSE benchmark tumbled 742.74 points or 0.90 per cent, and the Nifty declined by 181.45 points or 0.72 per cent.