Earnings, macro data, RBI rate decision to drive markets this week

On the earnings front, big names like ITC, M&M, Dabur, Titan and Interglobe Aviation, along with several others, will declare quarterly results this week

Announcement of macroeconomic data, quarterly earnings, RBI interest rate decision and foreign funds movement are the major factors that will guide the trading activity in the equity market this week, analysts said.
 

Other factors that would influence trading are global market trends, movement of the rupee and crude oil, they added.
 

"This week marks the beginning of the new month also so participants will be eyeing crucial data viz. auto sales and PMI numbers for cues. The highlight would be the MPC (Monetary Policy Committee) meet after the recent Fed policy and its outcome is scheduled for August 5," said Ajit Mishra, VP - Research, Religare Broking Ltd.
 

PMI (Purchasing Managers' Index) data for the manufacturing and services sectors are due in the first half of this week.

On the earnings front, big names like ITC, M&M, Dabur, Titan and Interglobe Aviation, along with several others, will declare quarterly results, Mishra added.
 

Apurva Sheth, Head of Market Perspectives, Samco Securities, said the RBI interest rate decision will be the main news item at home.
 

"It will be closely watched to see if the MPC takes a more aggressive stance like its western counterparts or walks on its own path," Sheth added.
 

The trading activity of foreign institutional investors, a major driver of the equity markets, would also be tracked for further cues.
 

"This week traders will be busy with domestic cues where the outcome of the RBI policy will be the most important event. Apart from this, monthly auto sales numbers and the next batch of Q1 earnings will be other important domestic factors to drive the market," Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
 

The market will also have an eye on the direction of global markets, crude oil, and the dollar index, Meena added.
 

Over the last week, the 30-share BSE benchmark jumped 1,498.02 points or 2.67 per cent.
 

Bulls continued to dominate domestic markets during the last week amidst positive global cues, analysts said.
 

Hemant Kanawala, Senior Executive Vice President & Head Equity, Kotak Mahindra Life Insurance Company, said on the domestic front, growth drivers remain intact with progress of monsoon providing added comfort. Good advancement of monsoon and healthy pick up in sowing should further abate risks of inflation, he added.
 

"Domestic investors are now bracing for the RBI's MPC meeting this week," said Vinod Nair, Head of Research at Geojit Financial Services.