Q4 results, developments on US-China tariff war top factors to drive stock markets this week

The stock market will remain closed on Monday, April 14, on account of Ambedkar Jayanti 2025.

Besides, corporate earnings of leading names such as Infosys and Wipro and their management commentaries will also give some direction to the markets.

That aside, global market trends and trading activity of foreign investors would also dictate market movement this week.

Additionally, important data points will also influence investor sentiment. Domestically, WPI and Consumer Price Index (CPI) inflation data are set to be released this week, while on the global front, major macroeconomic data from the US, UK and China are set to be released.

In his latest move on tariffs, Trump's administration, during the weekend, granted exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China, providing a big relief to tech firms such as Apple that rely on imported products.

China said it was evaluating the impact of the exclusions. In a statement on Sunday, the Ministry of Commerce called the move a "small step by the US to correct its wrong practice of unilateral 'reciprocal tariffs'," said a Reuters report.

Earlier, Trump unveiled a massive tariff plan in the first week of April. The White House later announced a 90-day pause on “reciprocal tariffs” for most countries except China, which in turn decided to impose 125% tariffs on US imports.

China on Friday upped its additional tariff on US goods to 125 %, retaliating to America’s 145% levy.

China, however, left the door open for talks between the world's two top economies as the tariff war between them continued.

Back home, equity benchmarks closed last week on a subdued note, ending with modest losses amid heightened volatility.

The US, on April 2, announced an additional 26% tariff on Indian goods entering the US. But on April 9, the Trump administration announced the suspension of these on India for 90 days until July 9 this year. However, the 10% baseline tariff imposed on the countries will continue to remain in place.

FIIs update

Foreign investors have pulled out ₹31,575 crore from the country's equity markets so far in April, in the wake of turbulence emanating from sweeping tariffs imposed by the US on most nations, including India.

This came following a net investment of ₹30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to ₹3,973 crore, according to data from the depositories.

Market sentiment will also be guided by the rupee-dollar trend and movement in the global oil benchmark, Brent crude.