Volatility gripped the market mood last week. Uptick in WPI inflation and cut in GDP forecast by the International Monetary Fund (10 basis points to 7.3 per cent for the current year and by 30 basis points to 7.5 per cent for 2019) offset the fall in crude prices and a satisfactory quarterly performance.

In the week ended July 20, S&P BSE Sensex fell 0.12 per cent and Nifty 50 closed flat at 11,010.20. Broader markets continued to bleed with the BSE Mid-Cap and BSE Small-Cap indices dropping 1.52 per cent and 2.93 per cent, respectively.

IT shares like Tata Consultancy Services and Wipro rose 0.74-0.84 per cent due to weak rupee (rupee hit an all-time low of 69.12 against the dollar on Friday), while Infosys rose 3 per cent.  Key heavyweights like Larsen and Toubro, Kotak Mahindra Bank, Hindustan Unilever lost 2-5 per cent.

Expiry of July derivative contracts, next batch of April to June 2018 quarterly earnings (HDFC Bank, ACC, Asian Paints, Ambuja Cements, Hero MotoCorp, L&T, Bharti Airtel, Dr Reddy's Laboratories, ITC, Maruti Suzuki India, YES Bank, HCL Technologies, ICICI Bank) and developments in monsoon session of Parliament will dictate the trend on the bourses next week. 

Till now, the corporate performance has been in line with the expectations, according to Vinod Nair, Head of Research, Geojit Financial Services.