Indian Markets Decline Amid Global Cues, Q1 Earnings

• Indian stock markets recorded their fourth consecutive weekly decline, with both Sensex and Nifty 50 closing lower.
• The market weakness is attributed to uncertain India-US trade talks, mixed Q1 corporate results, and sustained FII selling.
• The upcoming Federal Reserve meeting and the expiry of the US tariff pause deadline are key global events expected to impact market sentiment.

GG News Bureau
Mumbai, 28th July: Indian equity markets concluded the trading week on a weak note, with benchmark indices, the Sensex and Nifty 50, registering their fourth consecutive weekly loss. Market sentiment remains subdued due to a confluence of factors including ongoing uncertainty in India-US trade negotiations, mixed Q1 FY26 corporate earnings, and persistent selling by foreign institutional investors (FIIs).

On Friday, the Nifty 50 dropped 225.10 points, or 0.9%, to close at 24,837, extending its weekly decline to 0.5 percent. The Sensex also ended significantly lower. Technical analysts indicate that the Nifty’s fall below the crucial 24,900 support level and its close below the 50-day exponential moving average (EMA) signal a weakening of the bullish trend. Immediate support for the Nifty is now seen at 24,700, followed by 24,500, while resistance is placed around 25,000.

Key domestic and global events are expected to influence investor sentiment in the coming week. The highly anticipated Federal Open Market Committee (FOMC) meeting, commencing on Tuesday, July 29, will be closely watched for cues on US economic policy and inflation. Additionally, the expiry of the US tariff pause deadline on August 1 adds to global trade uncertainties.

FIIs have turned net sellers in July after three consecutive months of buying, with total outflows amounting to over Rs 6,503 crore so far this month, contributing significantly to the market’s downturn. Corporate earnings from major Indian and global companies, including Meta, are also anticipated to shape market direction.

The rupee’s trajectory against the US dollar is under close observation, with potential volatility tied to the Federal Reserve meeting’s outcome and tariff developments. Crude oil prices also remain a crucial factor, impacting India’s inflation outlook, with prices recently dropping to a three-week low amidst concerns over weak economic signals from the US and China.

Market experts suggest that July 29 could be a critical date for a potential trend reversal, and traders are advised to maintain a cautious stance.