Cues To Watch Next Week: India-US Trade Deal, Q1 Results, RBI MPC Meet Among Key Factors Affecting Stock Market Next Week

Cues To Watch Next Week: Equity benchmark indices ended yet another week in the red, marking their fifth consecutive weekly decline. Investor sentiment remained weak as US President Donald Trump’s announcement of a 25% tariff on goods imported from India, mixed corporate earnings, persistent foreign fund outflows, and concerns over tighter monetary policies weighed heavily on markets.

Throughout the week, both indices swung between gains and losses before slipping into negative territory. The BSE Sensex fell by 709.79 points (0.87%) in the past 5 days to close at 80,599.91, while the Nifty 50 dropped by 219.55 points (0.89%) to end at 24,565.35.

Key Events to Watch Next Week

Investors will be closely tracking several events in the coming week that could drive market direction.

India-US Trade Deal

The focus will be on the upcoming India-US trade negotiations. A US delegation is expected to visit New Delhi later this month. Any positive signals on tariff relaxations could boost sentiment, while delays or disagreements may add to uncertainty and pressure on equities.

Q1 Results Season Continues

Corporate earnings remain in the spotlight, with 128 companies set to announce their Q1 FY26 results. Key names include DLF, Adani Ports, Bharti Airtel, Lupin, Bajaj Auto, BHEL, Trent, BSE, LIC, Sun TV Network, Titan, and Tata Motors. These results will be crucial in gauging the financial health of India Inc. amid global challenges.

Also Read: IPO Next Week: 11 Issues To Hit Dalal Street—Check Full List And Dates

RBI MPC Meeting

The Reserve Bank of India’s Monetary Policy Committee will meet from August 4 to 6. Analysts expect a 25-basis-point repo rate cut, citing soft inflation and global uncertainties.

The meeting assumes greater importance after the recent tariff shock from the US. Investors will watch the RBI’s commentary on inflation, growth, and liquidity closely.

Foreign Investors Turn Sellers

Foreign portfolio investors (FPIs) pulled out Rs 17,741 crore from Indian equities in July, ending a three-month streak of positive inflows. Notably, between 28 July and 1 August, FPIs withdrew Rs 17,390.6 crore, reversing the month’s momentum.

This sharp selling was triggered by the new US tariffs, raising concerns over trade stability and prompting FPIs to reassess their exposure.

With trade tensions, key earnings, and the RBI policy meeting lined up, the coming week will be crucial in determining whether markets can break their losing streak or face further pressure.