Investors watch FIIs flows, currency trends, US tariff speculations, and key domestic data in the coming week

As the new week begins, market participants will focus on several key factors, including Foreign Institutional Investments (FII) flows, currency trends, speculations surrounding U.S. tariffs and their potential impact on global trade, and important domestic economic data.

Experts predict positive market momentum in the coming week, with the earnings season behind us. "Market attention will now turn to FII flows and currency movements for further direction. Speculation around U.S. tariffs and their implications for global trade will remain a critical point to monitor," said Ajit Mishra, SVP of Research at Religare Broking Ltd.

On the domestic front, key high-frequency data releases such as the HSBC Manufacturing PMI, HSBC Composite PMI, and HSBC Services PMI, scheduled for the upcoming week, will be closely watched, according to Mishra.

Abhishek Pandya, a research analyst at StoxBox, noted that India's markets are likely to experience positive momentum, supported by favorable macroeconomic indicators, such as the delay in reciprocal tariffs by the U.S. and a stable policy environment. With inflation at a five-month low of 4.31 percent, the Reserve Bank of India (RBI) remains confident in its inflation trajectory, allowing it to focus on growth.

"Global cues, including the minutes from the U.S. Federal Open Market Committee (FOMC) meeting and the European Central Bank's meeting, will also be important to watch," Pandya added.

Market experts suggest that investors will keep a close eye on corporate earnings and upcoming economic data to gauge the strength of the growth revival narrative. "Given the current global market dynamics, we expect to see moderate to positive momentum in the upcoming week," said Pandya.

After two weeks of recovery, markets resumed their corrective phase, shedding nearly 2.5 percent. The sentiment remained negative due to persistent selling from FIIs, mixed corporate earnings, and ongoing concerns about the global tariff war. However, a decline in retail inflation and resilience in select heavyweight stocks helped limit the pace of decline mid-week.

All major sectors faced selling pressure in line with the broader market, with the realty, energy, and auto sectors among the biggest losers. By the end of the week, the Nifty and Sensex indices closed near their weekly lows at 22,929.20 and 75,939.21, respectively.