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In the backdrop of a depreciating rupee and crude oil rate fluctuations, WPI inflation data, foreign investor sentiment, and global cues would be the strongest influencers on stock markets this week, say analysts.

Last week, markets remained volatile and ended in negative territory with the BSE benchmark index declining by 444.71 points, or 0.51 per cent.

Foreign investors pulled out ₹17,955 crore (USD 2 billion) from Indian equities in the first two weeks of this month, taking the total outflow to ₹1.6 lakh crore (USD 18.4 billion) in 2025.

“This week features an active domestic data calendar, with the release of India’s Wholesale Price Index (WPI) inflation and trade balance figures. Developments related to India-US trade discussions will remain in focus, while globally, the performance and macro cues from US markets are expected to influence near-term sentiment,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Persistent foreign fund outflows and a sharp depreciation in the rupee weighed heavily on investor confidence, he added.

 

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Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said equity markets are likely to remain volatile in this week as well.

“Equity markets are likely to remain highly volatile in the coming week as a heavy slate of global inflation data shifts investor focus back to the future course of monetary policy. With 10-year bond yields already edging higher across major regions, upcoming inflation prints from the US, Eurozone, and others will be closely scrutinised to assess whether the global monetary easing cycle is nearing its end,” he said. 

The spotlight will firmly be on the US, where key macro releases, including consumer price inflation, retail sales, and non-farm payrolls, are expected to provide deeper insight into the underlying strength of the economy and the inflation outlook, he added.

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said markets are expected to remain range-bound with bouts of volatility in the broader indices, “while any formal breakthrough on the India-US agreement could trigger a meaningful market up-move”.