Q1 earnings, crude oil trends likely to drive Dalal Street next week
Mumbai, July 12
Investors will closely track the ongoing Q1 FY27 earnings season, movement in crude oil prices, foreign fund flows and developments in West Asia next week after the Indian stock market ended its four-week winning streak amid heightened geopolitical tensions and volatile global cues.
Benchmark indices closed the week with marginal losses as renewed tensions in West Asia and a spike in crude oil prices dented investor sentiment.
However, a strong recovery in the final two trading sessions, supported by easing global concerns and robust earnings from Tata Consultancy Services (TCS), helped limit the losses.
The Sensex declined 0.25 per cent during the week to settle at 77,569.39, while the Nifty slipped 0.26 per cent to close at 24,206.90.
In contrast, broader markets remained resilient, with both the midcap and smallcap indices gaining more than one per cent.
Market participants are expected to keep a close watch on the June quarter earnings season, which has begun on a positive note following TCS' better-than-expected financial performance. The upcoming earnings announcements from several major companies will be crucial in determining the market's near-term direction.
Geopolitical developments in West Asia will also remain in focus. Investor sentiment turned cautious during the week after fresh US strikes on Iran heightened concerns over regional stability and global energy supplies. Any further escalation or signs of de-escalation are likely to influence risk appetite across global markets.
Crude oil prices will continue to be another key monitorable. Oil prices eased towards the end of the week amid expectations that the US and Iran would continue diplomatic engagement despite renewed hostilities and disruptions to shipping through the Strait of Hormuz.
The trajectory of crude prices remains critical for India, a major oil importer, as sustained increases could raise inflationary pressures and impact corporate profitability.
Foreign Institutional Investors (FIIs) remained net buyers through most of the week, investing around Rs 4,670 crore on a net basis.
The continued foreign inflows, aided by softer crude prices and improving global risk sentiment, provided support to domestic equities despite intermittent volatility.
— IANS
Reader Comments
Interesting how midcaps and small caps still managed positive returns. Shows retail investors are still confident despite FIIs being cautious. Let's see if this divergence continues or if it's a trap.
As a small investor, all this geopolitics gives me stress yaar! 😅 But TCS beating estimates gives hope for IT sector. Crude above $80 and we'll see inflation again - RBI better watch out. Keeping my SIPs going regardless.
Respectful criticism: The constant over-reliance on foreign flows is concerning. We need more domestic institutional participation to reduce volatility. Also, West Asia tensions have been around for decades - markets need to price this in rationally rather than overreacting every time. 🧐
Crude oil is the real wildcard here. If Strait of Hormuz gets disrupted, India's import bill will skyrocket. Good thing government has strategic reserves but still, fingers crossed for diplomatic resolution. TCS earnings were definitely a positive surprise though.
Market is showing remarkable resilience despite global chaos. Nifty holding 24,200 is impressive. Q1 earnings will be key - banking and auto sectors should do well with rural demand picking up. Let's hope the budget next week doesn't throw any surprises! 🚀
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