Markets Ahead: Tariff Tensions Cloud Sentiment Among Investors, All Eyes On Q3 Earnings, Inflation Data

With markets remaining closed on Monday for Dr Baba Saheb Ambedkar Jayanti and again on Friday for Good Friday, trading will be limited to just three sessions.

IT giants Infosys and Wipro are scheduled to unveil their quarterly performance this week, with banking majors like HDFC Bank and ICICI Bank also on the radar.

Source : ABPLIVE AI

Indian stock markets are expected to witness a volatile week as investors brace for global cues and key domestic earnings announcements amid a backdrop of geopolitical uncertainty and economic data releases. With markets remaining closed on Monday for Dr Baba Saheb Ambedkar Jayanti and again on Friday for Good Friday, trading will be limited to just three sessions—heightening the likelihood of concentrated volatility.

Geopolitical tensions continue to simmer following escalating tariff exchanges between the United States and China. Earlier this month, US President Donald Trump announced sweeping tariff hikes, prompting swift retaliation from Beijing. While Washington temporarily suspended “reciprocal tariffs” for most nations, China remained excluded from this relief. The US' decision to impose a 145 per cent duty on Chinese goods led to the Asian country responding  by raising tariffs on US imports to 125 per cent. Despite the aggressive trade moves, Beijing signalled willingness to resume dialogue.

Domestically, investors will keep a close eye on headline corporate results. IT giants Infosys and Wipro are scheduled to unveil their quarterly performance this week, with banking majors like HDFC Bank and ICICI Bank also on the radar. “The upcoming holiday-shortened week will remain sensitive to further developments on the US-China tariff front. On the domestic side, the spotlight will also be on corporate earnings, with heavyweights such as Wipro and Infosys from the IT sector, along with private banking majors HDFC Bank and ICICI Bank, scheduled to announce their quarterly results,” said Ajit Mishra – SVP, Research, Religare Broking Ltd, reported PTI.

Inflation Figures To Be Revealed

Beyond corporate earnings, macroeconomic indicators will play a critical role in shaping sentiment. On the domestic front, investors await the release of inflation data, including Wholesale Price Index (WPI) and Consumer Price Index (CPI) figures. “The upcoming week is set to be volatile for global and Indian markets, as the trade war between China and the US intensified with both countries imposing tariffs on each other, causing turmoil in the markets. Domestically, WPI and Consumer Price Index inflation data are set to be released. On the global front major macroeconomic data of US, UK and China is set to be released,” said Puneet Singhania, Director at Master Trust Group.

The previous week ended on a cautious note, with the BSE Sensex shedding 207.43 points (0.27 per cent) and the NSE Nifty slipping 75.9 points (0.33 per cent), reflecting increased risk aversion. Market watchers attribute this pullback to concerns over global trade policies and upcoming data points.

India also featured in the US trade discussion earlier this month. A 26 per cent additional tariff on Indian goods was introduced by Washington on April 2 but was later suspended until July 9. However, a 10 per cent baseline tariff remains intact.

“We expect the Indian markets to remain volatile, tracking global market cues, developments on the US tariffs and the Q4 corporate earnings announcements,” noted Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Additionally, currency fluctuations and crude oil prices will continue to influence investor behaviour. According to a note by Bajaj Broking Research, “This week brings a host of significant economic data releases from major global economies, which are expected to guide market sentiment and influence monetary policy expectations.”