Indian shares are expected to remain volatile next week as investors navigate a busy earnings calendar, inflation data, oil price swings, and recent geopolitical tensions, with foreign fund flows showing signs of recovery.
Indian shares are likely to stay choppy next week as investors juggle a crowded earnings calendar, the July inflation print, crude oil swings, developments in the US-Iran standoff and the direction of foreign fund flows, according to IANS.
The market finished the week in the green despite sharp intraday swings. The Sensex rose 0.52% over the week to 78,499.17, while the Nifty advanced 0.77% to 24,570.65. Traders also weighed the rollout of the new Closing Auction Session framework for F&O stocks, the Reserve Bank of India’s policy stance and continuing geopolitical uncertainty.
Quarterly results will be a major focus. Several large Indian companies are due to report April-June earnings, and investors will be looking for clues on demand trends, margin pressure and management guidance for the rest of the financial year. Markets will also react to July retail inflation data, which the Ministry of Statistics and Programme Implementation is scheduled to release on August 12.
Overseas developments could also shape sentiment. News reports have said Iran has placed fresh conditions on reopening the Strait of Hormuz, while the United Arab Emirates has said one of its vessels was targeted by an Iranian missile. Any further escalation could lift oil prices, adding to worries for import-dependent India. At the same time, recent reports have suggested talks involving the US, Iran and Oman may be moving towards an interim deal to reopen the shipping route, a sign that the situation remains fluid.
Foreign investors briefly returned as net buyers on Friday, ending a short selling run. Provisional exchange data showed they bought shares worth Rs 12,941.31 crore and sold Rs 12,461.07 crore, leaving a net inflow of Rs 480.24 crore. Domestic institutional investors also stayed supportive, with a net purchase of Rs 235.56 crore.
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