Indian Markets Brace for Potential Volatility Amid Global Cues and Corporate Earnings

This upcoming week, Indian stock markets are set to navigate through a complex landscape shaped by global trade signals, corporate earnings, and foreign investment trends. Economic updates from both India and the U.S. could influence investor sentiment, potentially adding to market volatility.

In the upcoming week, Indian stock markets are poised for potential turbulence, driven by both domestic and global factors. Market participants are keenly observing global trade cues, corporate earnings reports, and the investment patterns of foreign institutional investors amid prevailing uncertainties.

Corporate earnings and economic updates will take center stage as investors remain vigilant. According to market expert Rachit Khandelwal, head of Research at BNK Securities Pvt Ltd, the participation from the broader market remains strong, but a stock-specific strategy focusing on fundamentally robust companies is recommended.

Critical economic updates are expected from April 23 to April 25, 2025, which could sway market directions on both Indian and U.S. fronts. In India, data on S&P Global Manufacturing and Services PMI will be released, offering insight into industrial and service sector activity. Simultaneously, the minutes of the RBI's Monetary Policy Committee meeting will shed light on policy and inflation trends, while in the U.S., similar PMI data and the Initial Jobless Claims report will be keenly anticipated by investors.

According to Bajaj Broking's research team, the data-heavy week may spark market volatility, impacting monetary policy expectations. As Religare Broking's Ajit Mishra noted, the ongoing trade developments and corporate earnings will be crucial in maintaining market momentum. Markets saw a sharp recovery recently, driven by favorable cues, resulting in Nifty and Sensex closing near weekly highs amid significant foreign investor inflows.

Notably, foreign institutional investors turned net buyers, injecting over Rs 14,600 crore in mere sessions, indicating a renewed confidence in Indian equities. Conversely, domestic institutional investors offloaded Rs 6,500 crore worth of stocks, marking a healthy churn in the market as global sentiment begins to stabilize. (ANI)

(With inputs from agencies.)