What could be the major triggers and cues for the stock markets in the week starting on Jul 27 and what could be major drivers for Nifty and Sensex?

Some of the key triggers for the week starting 27 July can be summarized as under.

· Rising COVID numbers are a worry as average daily afflictions have crossed 45,000 in India. The good news is that even the recovery rate has improved sharply.

· With key states like Maharashtra, Delhi, Tamil Nadu, Karnataka and MP under pandemic stress, the deadline could be extended beyond 31 July.

· Mindspace REITS IPO opens on 27 Jul with 60% assured commitments from institutional investors, setting the tone for more REIT IPOs. Rossari bumper listing should help.

· US-China tensions have worsened in last few weeks with US likely to ban Chinese companies listing in US markets.

· The EU $858 billion fiscal spending package to give a liquidity boost for the equity markets globally.

· Nifty may be losing valuation edge as P/E rises above pre-COVID levels. The rally caused valuation concerns and may be an impediment on further rally in markets.

· FPI flows robust at Rs.7792 crore even as DFIs pulled out Rs.5323 crore hinting at domestic liquidity stress

· Major earnings releases this week including Reliance Industries, Kotak Bank, HDFC, Maruti, Reddy Labs, SBI, Bharti, Havells and IOCL could set the tone.

· Yes Bank FPO listing on 27 July will be critical after the 40% correction in last month and the tepid FPO subscription.

· Auto sales and core sector numbers will boil down to cars versus tractors debate as well as a likely recovery in core sector for June 2020.

· Markets will await key global triggers like the US FOMC meet, jobless claims, EU jobs & inflation, Japan growth and India F&O expiry could hold the key to markets.