The upcoming trading week is likely to stay news-heavy, with investors tracking retail inflation data, the ongoing April-June quarter earnings season, developments in the US-Iran standoff over the Strait of Hormuz, crude oil prices and FII flows, as the benchmark indices extended their winning run into a second straight week.
Indian equities closed higher for the second consecutive week, supported by a sharp fall in crude oil prices, a firmer rupee and continued foreign institutional buying.
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The Nifty 50 climbed 0.77% to close at 24,570.65, while the BSE Sensex gained 0.52% to settle at 78,499.17. The broader market outperformed, with the Nifty Smallcap index hitting fresh record highs.
Retail Inflation Data
The Ministry of Statistics and Programme Implementation is scheduled to release June-quarter retail inflation data on August 12.
Headline CPI inflation stood at 4.38% in June, above the RBI's 4% target but within its tolerance band, driven largely by food and energy prices, according to official data.
This follows the RBI's Aug. 5 policy review, where the Monetary Policy Committee held the repo rate unchanged at 5.25% for a fourth straight meeting, citing a need for "greater clarity" on the inflation outlook, RBI Governor Sanjay Malhotra said. The next MPC meeting is scheduled for Oct. 5-7.
Q1 Earnings
The results season continues into the week, with Lloyds Metals and Energy, Bosch, Bharat Forge, Linde India, Info Edge and Vodafone Idea among companies scheduled to report on Aug.10, according to corporate earnings calendars.
Siemens and Zydus Lifesciences are among the names expected on Aug.11, with the broader calendar showing over 250 companies reporting through the week.
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US-Iran Conflict
Tensions over the Strait of Hormuz remain unresolved. The US naval blockade on Iran, reimposed last month after an earlier ceasefire collapsed, continues, with Iran's military signalling it will not allow the blockade to persist, as per reports.
Iran has continued talks with Oman over reopening the strait, and the US has signalled cautious optimism about reaching a deal, though no resolution has been confirmed as of this week.
FII Inflows
Foreign institutional investors have shown mixed activity in recent sessions, net buying Rs 480.20 crore in the cash segment on August 7 after a period of selling earlier in the week, according to exchange data.
Crude oil's sharp pullback, with Brent falling to around $79-83 a barrel from levels above $100 in July, has been a key tailwind for sentiment, alongside a steadier rupee near 95.3-95.4 per dollar.
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