Q3 earnings, inflation data, global trends key drivers for markets this week: Analysts

New Delhi, Jan 11 (PTI) In an event-heavy week ahead, stock markets are expected to track Q3 corporate earnings from several blue-chip firms, including TCS and Infosys, while inflation data and global trends would also dictate investors' sentiment, analysts said.

Trading activity of foreign investors would also be keenly tracked by investors, experts noted.

"This week marks the start of the earnings season alongside a busy macroeconomic calendar. Investors will closely track India's CPI inflation, WPI inflation... Quarterly results from major companies across IT, banking, financial, and energy sectors will also be in focus," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Globally, markets will keenly watch developments around the US Supreme Court verdict on the legality of Trump-era tariffs, which could act as a key sentiment driver, he said and added that the ongoing geopolitical developments will also remain on investors' radar.

The movement of the rupee against the US dollar and crude oil prices would also be monitored during the week, according to a market expert.

"On the domestic front, the market is also entering the Q3 corporate earnings season, which will be a key near-term trigger for index direction and sectoral moves. Several heavyweight companies across indices are scheduled to announce their results, including TCS, HCL Tech, Infosys, Jio Financial Services, Reliance Industries and Tech Mahindra.

"Earnings commentary and management guidance from these leaders will play a crucial role in shaping market sentiment," Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said.

The domestic stock market ended the last week on a bearish note, reflecting heightened risk aversion triggered by renewed US tariff threats, geopolitical tensions and relentless foreign fund outflows.

Last week, the BSE benchmark declined 2,185.77 points or 2.54 per cent, and the Nifty tumbled 645.25 points or 2.45 per cent.

"India's December CPI, WPI food and manufacturing inflation data, along with the US core CPI, retail sales and home sales numbers, will be released throughout the week. These data points will influence expectations around the pace and timing of monetary policy easing by major central banks, with implications for global capital flows, currency movements and emerging market sentiment," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.

"This week, Q3 earnings will take centre stage, with IT stocks in focus as major players announce results. Any commentary from the US on trade policy and deal negotiations will also be keenly watched," Vikram Kasat, Head - Advisory, PL Capital, said. PTI SUM HVA