Indian equities extended their winning streak into a data-heavy week, with investors monitoring inflation, corporate earnings, and geopolitical developments amid stabilising crude prices and a steady rupee.
Indian equities head into a data-heavy week with investors watching inflation, earnings and geopolitics after the market extended its winning streak for a second straight week. The latest rally has been helped by softer crude prices, a firmer rupee and continued foreign buying, with the Nifty 50 closing at 24,570.65 and the Sensex ending at 78,499.17. The broader market has been even stronger, with small-cap shares touching fresh highs.
The biggest domestic focus will be June retail inflation, due on August 12 from the Ministry of Statistics and Programme Implementation. Official data showed consumer price inflation at 4.38% in June, still above the Reserve Bank of India’s 4% target but within its 2% to 6% tolerance band. Separate reports from The Economic Times and The Times of India put the June reading at 4.81%, driven largely by higher food costs, especially vegetables, highlighting how price pressures remain uneven even after recent moderation.
That print comes just days after the Reserve Bank kept its repo rate unchanged at 5.25% at its August 5 policy review, the fourth straight meeting without a change. Governor Sanjay Malhotra said the central bank wanted greater clarity on the inflation outlook before altering policy. Markets will now be weighing whether the next set of price data strengthens the case for patience into the RBI’s October 5-7 meeting.
Earnings will also dominate the week, with more than 250 companies due to report results. Lloyds Metals and Energy, Bosch, Bharat Forge, Linde India, Info Edge and Vodafone Idea are among the names scheduled for August 10, followed by Siemens and Zydus Lifesciences on August 11. Beyond domestic numbers, traders will keep a close eye on the US-Iran standoff over the Strait of Hormuz, crude oil, and foreign institutional flows after overseas investors returned to net buying on August 7. Brent has eased from above $100 a barrel in July to roughly $79 to $83, a shift that has helped sentiment alongside the rupee’s recent stability near 95.3 to 95.4 per dollar.
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