Wealnare Original: Indian Equity Markets Brace for Volatility as Earnings Season Heats Up

As the June-quarter earnings season gathers momentum, Indian equity markets are expected to remain volatile but largely range-bound. Investors are eyeing key corporate results this week, particularly from the IT and banking sectors, which hold the potential to steer market sentiment. The Nifty has found temporary support near the 25,000 mark, but its next directional cue hinges on how marquee companies perform and guide for the future.

HCLTech’s upcoming earnings announcement on July 14 is expected to set the tone for the next wave of IT results. Market expectations remain muted following a subdued performance from peers in the sector. Any marginal outperformance, or reassuring commentary on FY26 deal pipelines, could help stabilise the Nifty IT index. That in turn may pull the broader Nifty back into the 25,400–25,500 range. However, if results once again disappoint, investors may brace for another retest of the 25,000 support level, especially amid broader macro uncertainty and currency volatility. Banking stocks remain in focus as well, with SBI’s ₹25,000 crore QIP expected to price mid-week. A strong subscription response would be seen as a vote of confidence in the health of public sector lenders and may counterbalance sectoral drags from IT.

However, key risks continue to hang over the market’s near-term trajectory. A hotter-than-expected U.S. inflation reading could trigger another round of foreign institutional outflows, adding pressure to both equity benchmarks and the rupee. Any escalation in tariff-related rhetoric from the U.S. may further sour risk appetite. Conversely, a decline in U.S. bond yields following softer CPI or PPI prints could reverse sentiment and ignite a short-covering rally, potentially pushing the Nifty toward the 25,700 mark. In the interim, traders should prepare for heightened volatility with pockets of opportunity emerging around earnings beats and macro cues.