Indian equity markets are set for a choppy week ahead as investors brace for any new development on escalating trade tensions with the United States, besides the release of key domestic inflation data for July.

The cautious sentiment follows a sixth straight week of declines for benchmark indices, with both the Sensex and Nifty ending lower on persistent selling pressure and profit booking, analysts said.

During the week ended Friday, the BSE Sensex dropped 1.01 per cent to close at 79,857.79, while the NSE Nifty shed 1.20 per cent to settle at 24,363.30.