Mumbai, July 12 Markets drifted lower during the week and lost over a per cent, primarily pressured by the lingering uncertainty surrounding global tariffs and a disappointing start to the earnings season, analysts said on Saturday.

While the tone remained largely stable in the first three sessions, profit booking in the final sessions dragged the indices lower. Eventually, both the Nifty and Sensex settled near their weekly lows at 25,149.85 and 82,500.47, respectively.

According to Ajit Mishra–SVP, Research, Religare Broking Ltd., sentiment weakened amid heightened global trade tensions following US President Donald Trump’s renewed tariff threats on Canada and other key partners.

“Although there were expectations of an interim trade deal between the US and India, the lack of clarity kept risk appetite in check. Additionally, a weak start to the Q1 earnings season — especially after IT major TCS reported below-par results — added pressure to the markets in the final session,” he mentioned.

Consumption-oriented sectors such as FMCG and discretionary stocks experienced selective buying, supported by signs of urban demand revival and improving margins.

A backdrop of easing inflation, declining interest rates, and a favourable monsoon contributed to the overall positive undertone.

“Broader indices slipped into negative territory due to a lack of triggers to sustain current premium valuations and uninspiring results from a key IT bellwether, which raised concerns over FY26 earnings estimates,” said Vinod Nair, Head of Research, Geojit Investments Limited.

As Q1 FY26 earnings unfold, investors are closely monitoring guidance on margins and sector dynamics.

Looking ahead, the earnings season will be in full focus. A packed calendar includes results from HCL Tech, Tech Mahindra, Axis Bank, ICICI Bank, Wipro, JSW Steel, L&T Finance, and HDFC Bank, among others.

On the macroeconomic front, participants will closely track the WPI and CPI inflation data scheduled for July 14 for further cues on the economy. Apart from these, the trend in FII flows and movement in crude oil prices will also remain on traders’ radar, said market watchers.

Globally, markets will watch for any updates related to trade negotiations and tariffs, along with key economic data releases such as U.S. inflation and

“We anticipate a consolidation phase in the Nifty index with a negative bias in the near term, following the recent fall. Volatility is expected to persist amid global uncertainties and the unfolding earnings season. Traders are advised to maintain a stock-specific approach, focusing on companies with strong earnings and relative strength,” said Mishra.

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