What to Expect from the Stock Market This Week: Earnings, Trade Deals, and More

This week, the stock market is set to be influenced by corporate earnings reports, foreign fund flows, and global trade developments. Analysts are optimistic about a potential trade deal between India and the US, which could bolster market sentiment. Key companies like ONGC and ITC are expected to announce their quarterly results, impacting market trends. With the geopolitical landscape stabilizing, investors are shifting their focus to domestic earnings and economic data. Stay tuned for insights on how these factors will shape market movements in the coming days.

By Narendra Chaudhary May 19, 2025, 09:12 IST

Market Dynamics This Week

New Delhi: Analysts predict that stock market movements this week will largely hinge on corporate quarterly earnings, foreign investment trends, and global market influences.

Experts are also keeping a close eye on updates regarding international trade agreements and their potential effects on global markets.

With the India-Pakistan situation stabilizing and major geopolitical issues resolved, investors are expected to concentrate on the current Q4 earnings season.

Puneet Singhania, Director at Master Trust Group, mentioned that there is increasing optimism about a potential early trade agreement between India and the US, which could enhance market sentiment.

Domestic news and significant global economic data releases are anticipated to shape investor behavior and overall market trends.

US President Donald Trump reiterated that India is prepared to eliminate all tariffs on American products, suggesting that a trade deal between New Delhi and Washington is imminent.

This week, several major companies, including Power Grid Corporation of India, Hindalco Industries, ONGC, Sun Pharmaceutical Industries, ITC, and JSW Steel, are set to report their earnings.

Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that with no significant global or domestic events on the horizon, market attention will likely shift towards domestic earnings and high-frequency economic indicators for guidance.

Market participants will continue to observe foreign capital flows, which have been crucial in maintaining the current market rally.

Mishra added that the quarterly results from key corporations like ONGC, ITC, Hindalco, JSW Steel, and Power Grid could significantly impact short-term market trends.

Last week, the BSE benchmark index rose by 2,876.12 points, or 3.61%, while the Nifty increased by 1,011.8 points, or 4.21%.

Siddhartha Khemka, Head of Research at Wealth Management, Motilal Oswal Financial Services, emphasized that the ongoing Q4 earnings season will remain a focal point.

He noted that Foreign Institutional Investors (FIIs), who were net sellers in the first quarter of 2025, shifted to being buyers in April, with a notable increase in purchases amounting to Rs 23,778 crore by mid-May.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked that the investment landscape has improved due to the easing of the trade war between the US and China and the resolution of the India-Pak conflict.