A morning walk down Dalal Street: Earnings, CPI inflation key to watch

Another week of historic highs for Indian markets. Benchmark indices rose nearly 1 percent for the week ended 10 August but the S&P BSE Sensex failed to close above 38,000 while Nifty closed below 11500 levels.

The rally this week will be driven by any developments around trade war front, macroeconomic data, FIIs inflows as well as corporate earnings. 

On Friday, US markets ended lower as the deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets. A slump in the Turkish lira worsened after US President Donald Trump doubled tariffs on steel and aluminum imported from the country.

Investors fled to safe-haven assets, pushing the dollar higher and weighing on US bond yields, as reported by Reuters. 

Back home on the macro front, consumer price index (CPI) inflation will be released on Monday while Wholesale price index (WPI) Inflation and trade data for July will be announced on Tuesday.

A positive takeaway for investors is that foreign investors have pumped in over Rs 8,500 crore into the Indian capital markets in the last eight trading sessions on improvement in crude oil prices, stabilising rupee and better corporate earnings. 

According to the latest depository data, foreign portfolio investors (FPIs) pumped in a net sum of Rs 2,373 crore into equities during August 1-10 and a net amount of Rs 6,208 crore into the debt market, taking the total to Rs 8,581 crore (USD 1.2 billion).