New Delhi, April 21 : Markets will continue to focus on the earnings season and global cues in the upcoming week.

Vinod Nair, Head of Research, Geojit Financial Services, said GDP, PMI, and jobless claims data from the US next week will provide further insights into the Fed's policy. Additionally, Indian PMI data and Q4 results are anticipated to shape market trends in the coming week.

Indian markets staged a recovery as the week drew to a close, fuelled by strong performances in large caps amid global uncertainties. However, the domestic market failed to offset the losses sustained throughout the week, he said.

Globally, caution persisted as the situation in the Middle East remains fragile. Further, the potential delay of a US rate cut due to higher-than-expected inflation, robust retail sales, and elevated oil prices invoked subdued sentiments. This was evident through notable upticks in the dollar index, US bond yields, and the price of yellow metal. Sectors like banking and IT witnessed profit booking, he added.

Nair said mid and small-cap stocks also corrected, highlighting concerns over premium valuations. Muted Q4 earning expectations and weak IT results could extend the consolidation. FIIs continued to remain risk-averse, a trend seen since last week.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said the focus will remain on the earning season along with global cues. Investors would also track economic data points like Manufacturing & Service PMI data of the US & India, US Q1 GDP number, and Japan's policy statement.

/IANS