Q1 Earnings, Global Tensions to Keep Dalal Street on Edge This Week

Mumbai: Domestic corporate earnings and global geopolitical developments are expected to steer the Indian stock market in the coming week after benchmark indices extended their recovery despite concerns over rising oil prices, foreign fund outflows and uncertainty over the global interest rate outlook.

The Nifty ended the week 0.53 per cent higher at 24,334.30, while the Sensex gained 0.75 per cent to close at 78,151.45. The market showed resilience even as geopolitical tensions in the Middle East intensified and foreign investors continued to remain net sellers.

The June quarter (Q1 FY27) earnings season will be the biggest domestic trigger, with more than 250 companies scheduled to announce their financial results during the week. Investors will closely track management commentary on demand, profit margins, capital expenditure and future business outlook, which are expected to influence both overall market sentiment and stock-specific action.

Global developments will also remain under the spotlight after fresh US military strikes on Iran. The US Central Command said the operation followed an earlier Iranian attack in Jordan that claimed the lives of two American military personnel, while another service member remains missing.

Crude oil prices are likely to be another major factor for the markets. Oil prices surged more than 4 per cent on Friday to their highest level in over a month as escalating tensions between the US and Iran raised fears of supply disruptions from the Gulf region.

Institutional investment trends will continue to be watched closely. Foreign Institutional Investors (FIIs) remained net sellers for the fifth consecutive trading session on Friday, recording a provisional net outflow of ?376.41 crore. On the other hand, Domestic Institutional Investors (DIIs) extended their buying streak to eight straight sessions, making provisional net purchases worth ?1,017.89 crore.

According to exchange data, DIIs bought equities worth ?17,180.08 crore and sold shares worth ?16,162.19 crore during the session. FIIs purchased equities worth ?14,393.77 crore but sold shares worth ?14,770.18 crore, resulting in a provisional net outflow of ?376.41 crore.

With inputs from IANS