Stock market outlook: Quarterly results, global cues, FII activity to drive market sentiment this week

NEW DELHI: Stock markets are expected to be primarily influenced by corporate quarterly reports, foreign fund activity and worldwide market trends this week. Global trade agreements and their market impact will also be under close observation.Last week, the BSE benchmark index increased by 2,876.12 points or 3.61 per cent, while the Nifty rose by 1,011.8 points or 4.21 per cent."As the India-Pakistan conflict now stabilized and all major geopolitical events behind, investors' focus is likely to shift towards assessing the ongoing Q4 corporate earnings season," said Puneet Singhania, director at Master Trust Group, as quoted by PTI."Additionally, there is growing optimism around the possibility of an early India-US trade deal, which could provide further support to market sentiment," he added.Key global economic indicators and domestic developments will also affect investment flows and market direction, he further claimed.This analysis comes as the US President Donald Trump has reiterated his claim that India is prepared to eliminate 100 per cent tariffs on American products, suggesting an imminent trade agreement between the two nations. India has not made any confirmation on this.Meanwhile, Q4 earning reports, scheduled to be released this week will also have an impact on the market. Several major corporations including Power Grid Corporation of India, Hindalco Industries, ONGC, Sun Pharmaceutical Industries, ITC and JSW Steel will release their financial results this week."With no major global or domestic events scheduled, markets focus is expected to shift towards domestic earnings and high-frequency economic data for directional cues. Updates on global trade deals and their impact on global markets will also be closely tracked," said Ajit Mishra – SVP, research, Religare Broking Ltd.Foreign capital movements will also remain under scrutiny, as they have been instrumental in maintaining the current market momentum, he indicated."On the corporate earnings front, several prominent companies, including ONGC, ITC, Hindalco, JSW Steel and Power Grid are set to announce their quarterly results, which could influence near-term market trends," Mishra added.Siddhartha Khemka, head - research, wealth management at Motilal Oswal Financial Services, mentioned that attention will continue to focus on Q4 earnings reports."FIIs (Foreign Institutional Investors)who were sellers in the first three months of 2025 having sold equity for Rs 1,16,574 crore during this period turned buyers in April. This change in FII strategy from selling to buying accelerated in May with big buying of Rs 23,778 crore through 16th May," said VK Vijayakumar, chief investment strategist, Geojit Investments Limited, ."With the global trade scenario improving after the pause in trade war between the US and China and the end of the India-Pak conflict, the investment scenario has improved," he added.