Trading pattern in the stock market this week will largely depend on the ongoing Q3 earnings announcement from corporates, global trends, and foreign fund movement, analysts said.
Moreover, geopolitical developments and any update on trade negotiations would also be keenly tracked by investors, experts noted.
"Participants will initially react to the earnings of key heavyweights such as Reliance Industries, HDFC Bank, and ICICI Bank. Thereafter, focus will shift to the broader set of Q3 earnings from several large and midcap companies across sectors.
1 January 2026
Get the latest issue of Outlook Business
"On the global front, US macroeconomic data, including GDP growth, jobless claims, and PMI readings, will influence risk sentiment and currency movement. Geopolitical developments and updates on trade negotiations will also remain on investors’ radar," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
Reliance Industries Ltd on Friday reported almost a flat net profit of ₹ 18,645 crore for the third quarter, as a decline in gas production and weakness in its retail business offset gains in other segments.
The country's largest conglomerate saw muted earnings growth in the retail business on GST rate rationalisation, demerger of consumer product business and distribution of festive buying split between two quarters.
Its consolidated net profit of ₹18,645 crore, or ₹13.78 per share, in October-December FY26, compared to ₹18,540 crore, or ₹13.70 per share a year back, according to a company statement.
"Beyond earnings, market participants will keep a close watch on the geopolitical situation and any crucial updates regarding the US-India trade deal. With the Union Budget approaching, sector-specific movements based on pre-budget expectations are also likely to gain traction," Santosh Meena, Head of Research at Swastika Investmart Ltd, said.
HDFC Bank's consolidated profit jumped 12.17% to ₹19,807 crore in the December quarter.
ICICI Bank's consolidated net profit in the quarter declined 2.68% to ₹12,537.98 crore.
"Indian markets head into the new week with a cautious but stock-specific tone, as investors balance domestic earnings cues against global macro and geopolitical developments. Banking stocks are likely to remain in the spotlight as markets digest quarterly results from heavyweights such as ICICI Bank and HDFC Bank, along with a host of private and public sector lenders," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.
On the global front, uncertainty around US trade negotiations and the continued 50 per cent tariff on Indian imports remain a headwind for sentiment, he said adding that however, attention is shifting to the India–EU trade agreement, which is expected to be concluded later this month and could act as a meaningful catalyst for improved investor confidence.
Commerce and Industry Minister Piyush Goyal on Friday said the free trade agreement between India and the 27-nation bloc EU, the negotiations for which are at the last leg, will be the "mother of all deals" the country has signed so far.
The conclusion of talks for the agreement is likely to be announced on January 27.
The forthcoming results this week are from BHEL, LTIMindtree, PNB, AU Small Finance Bank, Adani Energy Solutions, Bank of India, InterGlobe Aviation, DLF, BPCL and Adani Green Energy.
Markets largely consolidated during the last week amid mixed cues and ended almost unchanged, Mishra of Religare Broking Ltd, said.
In a holiday-shortened last week, the BSE benchmark dipped 5.89 points, and the NSE Nifty went up by 11.05 points.
