Equity markets are expected to remain focused on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, the ongoing Q1 FY27 earnings season and global developments in the coming week, with investors closely tracking management commentary, macroeconomic data and geopolitical events for market direction.Ajit Mishra, SVP, Research at Religare Broking Ltd., said the RBI MPC meeting scheduled from August 3 to August 5 will be the key domestic trigger. Investors will also monitor the Q1 FY27 earnings season, with several large-cap and mid-cap companies set to announce results.Management commentary on demand trends, margin outlook and capital expenditure plans will remain in focus.On the macroeconomic front, market participants will watch July Composite PMI and GST collection data for signals on the strength of domestic economic activity.Globally, developments surrounding the US-Iran conflict, the stability of crude oil supplies through key shipping routes and evolving expectations for US monetary policy will continue to influence market sentiment, Mishra said.Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., said the RBI Monetary Policy outcome on August 5 will be a key domestic event. The central bank’s interest rate decision, policy guidance and commentary on inflation will be closely watched for cues on the domestic economic outlook.He added that quarterly results from Bharti Airtel, ONGC, Power Grid, Trent, Hindalco, SBI and Titan, along with their management commentary and forward guidance, are expected to shape market sentiment.Investors will also track the progress of the southwest monsoon, as rainfall trends and sowing activity could influence inflation expectations and rural demand.Last week’s rallyBenchmark indices staged a strong recovery last week, supported by easing geopolitical tensions, lower crude oil prices, renewed foreign institutional investor buying and encouraging Q1 FY27 corporate earnings.Brent crude retreated significantly after briefly crossing US$100 per barrel in the previous week, following a temporary pause in hostilities between the United States and Iran, raising hopes of a diplomatic resolution.Global risk sentiment also improved as investors assessed geopolitical developments alongside expectations for monetary policy after the US Federal Reserve maintained its policy stance.Domestically, stock-specific action remained strong during the Q1 FY27 earnings season, while renewed FII buying after a prolonged phase of outflows and a nearly 16 per cent decline in India VIX further supported sentiment.The Nifty advanced 2.59 per cent to close at 24,383.60, while the Sensex gained 2.68 per cent to settle at 78,094.64, marking the second consecutive monthly gain for both indices in July.Sectoral trendsAccording to Gour, the rally was driven by broad-based buying across sectors, with Nifty IT emerging as the top-performing sector, followed by Nifty Auto. Nifty Energy was the only sector to end the week in the red.Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd., said fund flow data also supported the market’s recovery, with foreign institutional investors turning net buyers and investing about ₹5,950 crore in cash equities, while domestic institutional investors remained net buyers with inflows of around ₹5,388 crore.Singh said the sustainability of the market’s recent gains will depend on whether crude oil prices remain in the lower range and whether de-escalation talks in West Asia result in concrete outcomes rather than headlines.Published on August 2, 2026