Mumbai: The Indian stock market is expected to remain volatile next week, with several key events lined up that could influence investor sentiment.

Investors will closely track the final batch of March quarter earnings, key economic data, the monthly expiry of May derivatives contracts, foreign investment trends, and developments in the India-US trade deal in the upcoming week.

This week, the domestic equity market ended on a weak note, with the Nifty and Sensex falling nearly 0.7 per cent to close at 24,853 and 81,721, respectively.

In contrast, the Bank Nifty index edged up by 43 points, supported by gains in banking stocks.

The overall sentiment remained cautious due to global uncertainties, including the rise in US bond yields and continued foreign fund outflows.

A major concern for investors has been the spike in US Treasury yields. The 10-year yield touched 4.63 per cent, the highest since February.

Key macroeconomic data will also be released this week. On May 28, India will unveil industrial and manufacturing production figures for April.

On May 30, the GDP growth data for FY25 and the March quarter will be announced, giving fresh insight into the country’s economic performance and recovery pace.

Earnings season will draw to a close with results from key major companies. Investors will be keenly watching the management commentary and sector-specific outlooks.

Meanwhile, foreign institutional investors (FIIs) sold shares worth Rs 11,591 crore last week, while domestic institutional investors (DIIs) made net purchases of Rs 11,199 crore.

However, market experts remain optimistic about India’s long-term growth potential.

They point out that heavy FPI outflows have often been followed by strong rebounds, as India’s fundamentals remain attractive to global investors.

Globally, attention will also be on US Fed Chair Jerome Powell’s speech on Monday (May 26), which may offer cues on interest rate direction.

The Federal Reserve’s minutes from its May 6-7 meeting will be released on Wednesday (May 28) and are expected to provide further clarity on inflation and monetary policy.

On Thursday (May 29), the US will announce its second estimate of GDP growth for Q1 2025 along with jobless claims data — both crucial indicators of economic health.