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Sensex, Nifty Face Volatility from Earnings, Inflation, US Tariffs

Indian stock markets are poised for a volatile week ahead, influenced by the start of the Q3 earnings season and key macroeconomic data releases. Major IT firms like TCS, Infosys, and Wipro will announce their results, setting the tone for corporate performance. Simultaneously, inflation and trade balance figures will be scrutinized for economic health and policy direction. Global uncertainty, particularly regarding US Supreme Court decisions on President Trump's tariff measures, will also be a critical factor for market sentiment.

Key Points: Sensex, Nifty Outlook: Q3 Earnings, Inflation Data, US Tariffs

  • Q3 earnings season begins with IT majors
  • Key inflation & trade data due
  • Global cues from US tariff uncertainty
  • Markets ended week on weak note
2 min read

Q3 earnings, inflation data and US tariff uncertainty likely to drive Sensex, Nifty next week

Indian markets brace for volatility driven by Q3 earnings from IT majors, key inflation data, and uncertainty over US trade policy and tariffs.

"A breakdown below 25,300 may intensify downside pressure - market expert"

Mumbai, Jan 11

Indian stock markets are expected to remain volatile in the coming week as investors brace for a mix of key domestic and global triggers, including the start of the December quarter earnings season, the release of crucial inflation data, and continued uncertainty over US trade policies.

Benchmark indices ended the past week on a weak note, extending their losing streak to five sessions, as caution ahead of corporate results and persistent foreign fund outflows kept sentiment subdued.

The focus will now shift to how companies perform in the December quarter and whether macroeconomic numbers provide any relief to markets.

The earnings season will kick off with major IT companies such as Tata Consultancy Services, HCL Technologies, Infosys, Wipro and Tech Mahindra announcing their Q3 results.

On the macro front, the coming week will be data-heavy, with India set to release CPI inflation, WPI inflation, trade balance figures and foreign exchange reserves data.

These indicators will be crucial in assessing the health of the economy and shaping expectations around interest rates and policy outlook.

Global cues will also remain in focus, especially developments related to US trade policy. The US Supreme Court is scheduled to hear and deliver decisions on key cases, including a challenge to President Donald Trump's sweeping global tariff measures.

Any clarity or surprise ruling could influence global markets and, in turn, Indian equities.

"Immediate resistance lies at 25,800, followed by 25,940 and 26,000, while support is placed at 25,600 and 25,450. A breakdown below 25,300 may intensify downside pressure," an expert said.

"On the daily timeframe, Nifty closed decisively below the crucial 25,800 resistance level -- reflecting a breakdown of an important supply zone and short-term bearish dominance," a market expert stated.

- IANS

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Reader Comments

P
Priya S
The inflation data is key. If CPI stays within RBI's comfort zone, it might give some confidence. But with FIIs pulling out money continuously, sentiment is very fragile. Let's hope for some positive surprises from the earnings season! 🤞
R
Rohit P
US tariffs are a big worry. Our IT sector is heavily dependent on the US market. Any negative ruling from their Supreme Court could trigger another round of panic selling. Time to be very selective with stocks.
S
Sarah B
As a long-term investor, these short-term fluctuations don't bother me much. The fundamentals of the Indian economy are strong. This is a good time to review your portfolio and add quality stocks at lower levels. Patience is key.
V
Vikram M
Honestly, the expert commentary feels like noise. Every day there's a new resistance and support level. The market will do what it does. Focus on company earnings and management commentary, not these daily charts.
K
Karthik V
The trade balance data is crucial too. If the deficit widens, it will put pressure on the rupee. A weak rupee is a double-edged sword - good for IT exports but bad for inflation. Tough week ahead for traders.

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