After ending last week on a firm note, Dalal Street is heading into a crucial trading week where corporate earnings, global developments and commodity prices are expected to dictate investor sentiment.
The spotlight will be on the start of the June-quarter earnings season, with IT major Tata Consultancy Services (TCS) set to announce its results on July 9. Market participants will closely track the company's management commentary for clues on demand trends, discretionary technology spending and the pace of artificial intelligence-led business opportunities.
"Investors will closely monitor the quarterly results of TCS on July 9, with particular focus on management commentary regarding demand trends, discretionary spending, and AI-led business opportunities," Ajit Mishra, Senior Vice President (Research) at Religare Broking, said.
Analysts believe the first set of earnings will offer an early indication of how Indian companies are navigating margin pressures, consumer demand and the broader economic environment.
According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart, the opening phase of the earnings season will provide valuable insights into corporate profitability and future business outlook, factors that could shape market direction in the coming weeks.
Apart from earnings, global cues are expected to remain influential. Investors will closely follow the minutes of the US Federal Reserve's June policy meeting for signals on the future path of interest rates after recent economic data strengthened expectations of a less aggressive monetary stance.
Crude oil prices will also remain under watch after stabilising around USD 68-69 per barrel. According to Ponmudi R, CEO of Enrich Money, stable energy prices would be supportive for India's inflation outlook and external sector.
Developments in the ongoing US-Iran talks, scheduled to resume this week, may also affect oil markets and global investor sentiment.
Back home, the progress of the southwest monsoon and kharif sowing will be another key monitorable. Analysts say a healthy monsoon could support rural demand, help keep food inflation in check and strengthen the country's overall growth outlook.
Vinod Nair, Head of Research at Geojit Investments, said the market's near-term direction would largely depend on a combination of domestic earnings, the US Federal Open Market Committee (FOMC) minutes and the progress of the monsoon.
The benchmark Sensex gained 663.44 points, or 0.86%, last week, while the Nifty advanced 214.85 points, or 0.89%, setting the stage for another eventful week on Dalal Street.
(With inputs from PTI)