Indian equity markets are gearing up for a week packed with crucial macroeconomic data and the beginning of the corporate earnings season, following a robust start to 2026 that saw benchmarks scaling fresh peaks. Analysts predict that domestic and global indicators will set the tone for investor sentiment in the coming days.
Domestic Data and Earnings in Focus
The trading week is expected to be heavily influenced by key data releases. Ajit Mishra, SVP of Research at Religare Broking Ltd, highlighted that the final readings of the HSBC Services PMI and Composite PMI will be closely monitored to gauge the health of domestic business activity and employment trends. Ponmudi R, CEO of Enrich Money, echoed this, stating the data will offer clarity on business momentum.
Attention is also pivoting towards corporate results. The December-quarter earnings season kicks off on January 12, with IT majors Tata Consultancy Services (TCS) and HCL Technologies slated to announce their numbers. Traders are likely to position their portfolios selectively ahead of these and other results from key index constituents.
Global Cues and Market Sentiment
On the international front, all eyes will be on the United States. Vinod Nair, Head of Research at Geojit Investments Ltd, and other experts pointed to US non-farm payrolls and unemployment data as critical triggers. These figures could shape expectations around the Federal Reserve's interest rate path and influence global risk appetite. Releases from China regarding growth and demand will also be watched.
Ravi Singh, Chief Research Officer at Master Capital Services Ltd, noted that while global cues like US rates and geopolitics will affect short-term moves, domestic fundamentals such as earnings, government spending, and consumption are becoming the primary driver for Indian markets.
A Strong Start Defying Seasonal Trends
Indian equities concluded the previous week on a powerful note, setting a positive stage for 2026. The BSE Sensex jumped 720.56 points (0.84%), while the NSE Nifty gained 286.25 points (1.09%). Notably, the Nifty 50 index touched a fresh all-time high of 26,340 on Friday.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, observed that this strong commencement defies the typical January trend of consolidation. He attributed the firm market structure to robust underlying factors and sustained positive sentiment. Adding to the optimism, Foreign Institutional Investors (FIIs) turned net buyers on Friday, purchasing equities worth Rs 289.80 crore.
Investors will additionally track the movement of the Indian rupee against the US dollar and trends in Brent crude oil prices. While short-term volatility around major data releases is possible, the broader outlook for Indian markets as 2026 unfolds remains constructive, analysts concluded.
