Macroeconomic data, global trends, Q1 earnings to drive market sentiments this week: Analysts

New Delhi: Macroeconomic data announcements, the last batch of Q1 earnings and global trends are the major factors that would influence trading sentiments in the equity market in a holiday-shortened week ahead, analysts said.

Besides, trading activity of foreign investors would also be a crucial factor in dictating movement in the market.

Equity markets would remain closed on Thursday for Independence Day.

"This week, all focus will be on the global markets as we can see the extension of weakness after a long period of stability. The Indian equity market could also witness some bit of levelling off this week as investors process recent gains and contend with high prices. Geopolitical tensions are also escalating, but markets are not reacting significantly, which is reflected in the declining crude oil prices," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

On the domestic front, the last batch of Q1 earnings will drive stock-specific movements. Hero MotoCorp, Hindalco are some of the big corporate earnings this week, he added.

"Additionally, institutional flows will play a crucial role in market dynamics," Gour said.

Vodafone Idea, NMDC, IRCTC, SJVN and PC Jeweller would also announce their quarterly earnings during the week.

From the macroeconomic front, industrial production data for June and inflation rate for July will be announced on Monday. WPI inflation data will be out on Wednesday.

Indian inflation data is due this week, said Vinod Nair, Head of Research, Geojit Financial Services.

"Moving forward, the direction of the domestic market will be influenced by global markets," Nair added.

Last week, the BSE benchmark slumped 1,276.04 points or 1.57 per cent, while the Nifty declined 350.2 points or 1.41 per cent.

Stock markets globally faced a sharp correction last week triggered by the unwinding of the yen carry trade and recession fears in the US.