RBI rate decision, global cues, earnings to drive markets this week: Analysts

RBI's interest rate decision, US-China tre conflict and quarterly earnings would influence tring in equity markets this week, say analysts.

Participants will also keep an eye on taxation issues following reports that Prime Minister's Office and finance ministry have held talks regarding tax surcharge on FPIs anunced in Budget.

However, key trigger this week is likely to be Reserve Bank's three-day policy meeting, beginning Monday (August 5).

central bank is expected to cut benchmark interest rate for fourth time in a row to boost ecomy at time when key indicators are pointing towards a slowdown, experts said.

" market is w awaiting RBI meet which is scheduled this week," said Mustafa Neem, CEO, Epic Research.

PMI data for services sector is due on Monday, which would also influence tring sentiment, according to marketmen.

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According to Arun Thukral, MD and CEO, Axis Securities, " recent correction has been driven by various factors -- global weakness, selling by FPIs along with signs of a slowdown in domestic ecomy. Having breached psychologically crucial levels, markets are expected to be volatile in near term."

Also, ongoing results season will continue to determine market trend.

Cipla, HCL Techlogies Limited, Lupin, M&M, Tata Steel, Hexaware Techlogies and GAIL India are among major corporates scheduled to anunce ir results this week.

" BSE-30 share index declined 2.1 per cent this week led by weak domestic and global cues. Commentary of US Federal Reserve on future rate cut, weak underlying trends in quarterly results, slump in automobile sales dented investor sentiments," said Sanjeev Zarbe, VP PCG Research, Kotak Securities.

Global markets were rattled last week after US President Donald Trump anunced fresh tariffs on Chinese imports, which Beijing vowed to retaliate.

Over last week, Sensex lost 764.57 points or 2.01 per cent.

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