After an over 1 per cent up move in the benchmark Sensex and Nifty last week, corporate earnings, macro numbers, and global cues are likely to dictate the market trend this week. Besides, investors will also track the latest developments and trends on the Covid-19 front.

Among the global factors, the rising US-China tensions remains a key risk for the global as well as Indian markets. The US Treasury, over the weekend, imposed sanctions on 11 top officials from Hong Kong and mainland China in response to Beijing's controversial national security law. On the other hand, the US is expected to finalize a second round of stimulus package this week, which can lift the market sentiment across the globe.

Besides, investors may focus on earnings-led stock-specific approach for the week.

Around 700 companies are scheduled to announce their results this week as we enter the concluding stages of the June quarter earnings season. Among major earnings to be announced this week are Titan, Aurobindo Pharma, Bank of Baroda, BPCL, Hero MotoCorp, and MRF.

The Covid-19 trend remains a key worry for the bulls. The number of cases in India jumped to 22.14 lakh as the country reported 62,117 new infections on Sunday, according to Worldometer. The death toll reached 44,466.

Besides, investors will also closely watch the inflation and industrial output numbers especially after the RBI, in its policy review last week said that inflation is expected to be at elevated levels during the second quarter. The industrial output for June will be released on Tuesday and the CPI inflation data for July will be released on Wednesday. Wholesale inflation data will be out on Friday.

Apart from these, investors will also follow the oil price movement, the Rupee's trajectory against the US dollar, and foreign fund flow.

For today, the Indian markets are expected to open on a flat note on the back of a muted trend in Asian markets as investors kept one eye on flaring tensions between the US and China and another eye on US fiscal stimulus talks.

Australia's ASX 200 rose 0.8 per cent and South Korea's Kospi gained 0.6 per cent in early deals while Hang Seng slipped 0.9 per cent. The Japanese and Singaporean markets closed for public holidays.

Telecom stocks will be in focus in today's session as the Supreme Court is expected to give its final verdict in the AGR case today. This will decide whether the telecom companies will be allowed a relaxed payment structure for clearing the dues they owe to the Union government.

Defence-related stocks may also trade actively today after the government yesterday announced a phased, year-wise embargo on the import of 101 items of defence equipment. The military will be required to buy it from Indian defence manufacturers.