Mumbai (Maharashtra) [India], July 27 (ANI): The upcoming week is expected to be pivotal for global stock markets, as a series of significant economic events are scheduled across the United States, India, and China. Analysts believe that investor sentiment will be heavily influenced by key economic indicators and, most notably, the outcome of the ongoing trade negotiations between India and the US.
“The week from July 28 to August 1, 2025, is packed with crucial economic developments in the US, India, and China, which could significantly influence global market sentiment,” said the Bajaj Broking Research team in its weekly market commentary.
Market experts noted that any positive surprises from the ongoing Q1 earnings season or constructive updates on the trade talks could offer a much-needed lift to market morale.
“At this stage, any favorable development on the global front—particularly in trade negotiations involving the US—could serve as a catalyst for the markets. Even signs of progress would help ease investor concerns. Additionally, any positive earnings surprises could help support the market at lower levels,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
Key Economic Events to Watch
In India, the week kicks off with the release of Industrial Production (YoY) data on July 28, which will help gauge the health of the country’s industrial sector. This will be followed by the HSBC India Manufacturing PMI on August 1, offering insight into factory output and manufacturing business conditions.
China is scheduled to release its Manufacturing PMI on July 31, a key indicator of industrial activity and business confidence in the world’s second-largest economy.
In the United States, all eyes will be on the Federal Reserve’s FOMC interest rate decision on July 30, a critical event that could shape market expectations amid persistent inflation concerns. On the same day, the US will also release its GDP Annualized QoQ and ADP Employment Change data, providing a snapshot of economic growth and private sector hiring trends. The Initial Jobless Claims report, due July 31, will further clarify the labor market’s health.
Market Performance and Outlook
The benchmark Nifty index extended its losing streak for a fourth consecutive week, reflecting continued investor caution. Analysts attribute this sustained weakness to a combination of underwhelming corporate earnings, the absence of strong domestic catalysts, and uncertainty over global trade developments.
During the week, Nifty made a modest attempt to rebound from a key support zone, briefly closing above its 20-day EMA on Wednesday and sparking hopes of a turnaround. However, the recovery lacked momentum and quickly faded as renewed selling pressure pushed the index back into negative territory.
The Q1 earnings season has, so far, largely disappointed investors, with several major companies missing expectations. This has further weighed on market sentiment, particularly at a time when strong earnings were anticipated to drive upward momentum.
Beyond earnings, the absence of meaningful domestic triggers and continued ambiguity surrounding international trade negotiations have contributed to the cautious tone across markets. According to analysts, while weak corporate results alone may not be the sole reason for the correction, the combined effect of global headwinds and lack of fresh buying triggers has reinforced the prevailing bearish sentiment. (ANI)
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