In the upcoming week, investors in the stock market will be closely monitoring key events such as the US Federal Reserve’s interest rate decision, the Union Budget, and Q3 earnings, according to analysts.
Apart from these, factors like global developments, foreign investors’ trading activities, the rupee-dollar exchange rate, and the movement of Brent crude oil prices will also impact trading in the equity market, experts suggest.
“Market sentiment is currently focused on the upcoming Union Budget, scheduled for February 1, as investors look for a significant trigger to boost confidence. The Q3 earnings season has been underwhelming so far, especially in the consumption and financial sectors,” said Santosh Meena, Head of Research at Swastika Investmart Ltd.
The Federal Open Market Committee (FOMC) policy meeting will also be crucial on the global front, Meena added. Additionally, movements in US bond yields and the Dollar Index will be key indicators to watch. A reversal in these areas could drive positive sentiment in global markets.
FII flows will continue to play a vital role in the Indian equity market, Meena mentioned.
The stock market will be open for trading on February 1, which is a Saturday, for the Union Budget presentation, as announced by BSE and NSE last month.
“This week holds significance not only for the equity markets but also for the economy, with the Union Budget scheduled for February 1,” said Ajit Mishra, SVP of Research at Religare Broking Ltd.
Several companies, including Tata Steel, Bajaj Auto, Maruti, Tata Motors, ONGC, and IndusInd Bank, are gearing up to release their quarterly earnings during the week, Mishra noted. Furthermore, global events such as the US FOMC meeting and statements from the US President will influence market sentiment.
Last week, the BSE benchmark index declined by 428.87 points or 0.55%, while the Nifty dropped by 111 points or 0.47%.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, expects domestic equities to trade with some volatility amidst the ongoing Q3 result season, developments in the US President Trump’s economic policies, and the Union Budget on Saturday. PSU and capex-themed stocks, such as railway, defense, and capital goods, will be in focus ahead of the Budget, Khemka added.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, anticipates investors to exercise caution ahead of the Union Budget announcement.
(Source: The Hindu Business Line)
