Market Outlook: Quarterly Results, Inflation Data, Trump Tariffs Likely to Drive Markets Next Week

Mumbai — Indian stock markets are set for a crucial week ahead, with investors gearing up for a series of key developments including second-quarter corporate earnings, inflation data releases, and the global impact of U.S. President Donald Trump’s tariff announcement.

A number of major companies are slated to declare their Q2 FY26 results, including top IT firms such as Infosys, HCL Technologies, Wipro, Tech Mahindra, and LTIMindtree, as well as leading private sector banks like Axis Bank, ICICI Bank, and HDFC Bank.

The government’s retail inflation data for September will be released on October 13, followed by wholesale inflation figures on October 14. These metrics are closely watched as they reflect overall economic health and can significantly influence market sentiment and monetary policy expectations.

In August, retail inflation stood at 2.07 per cent, while wholesale inflation came in at 0.52 per cent, both remaining comfortably within the Reserve Bank of India’s target range.

Adding a global dimension to market movements, President Trump’s decision to impose a 100 per cent tariff on Chinese imports, up from the current 30 per cent, effective November 1, is expected to stir volatility across world markets. Analysts say the move could disrupt global trade flows and weigh on risk assets, including equities in emerging markets.

Performance Recap: A Positive Week for Indian Equities

The previous trading week saw Indian benchmarks post solid gains. The Nifty 50 advanced 1.57 per cent or 391.10 points to close at 25,285.35, while the Sensex rose 1.59 per cent or 1,293.65 points to settle at 82,500.82.

On the sectoral front, Nifty IT led the rally with a 4.89 per cent weekly gain, driven by optimism ahead of earnings season. Other notable gainers included:

• Nifty PSU Bank: +1.48%

• Nifty Financial Services: +1.57%

• Nifty Pharma: +2.12%

• Nifty Realty: +2.35%

• Nifty Private Bank: +2.22%

• Nifty Services: +2.27%

• Nifty Healthcare: +3.19%

However, a few sectors lagged behind — Nifty Media fell 2.69%, Nifty India Defence slipped 0.46%, and Nifty FMCG edged down 0.37%.

Meanwhile, broader markets also witnessed healthy traction, with the Nifty Midcap 100 rising 2.08% and the Nifty Smallcap 100 gaining 1.43% for the week.

As investors brace for a data-heavy and eventful week, analysts expect earnings trends and inflation signals to guide short-term direction, while global trade developments could add an extra layer of uncertainty to market sentiment.

With inputs from IANS