- विज्ञापन -
Mumbai: Indian markets are gearing up for a crucial week ahead, as significant events like the Union Budget, macroeconomic data releases, Q3 earnings reports, and the US Federal Reserve’s policy decision are expected to impact market sentiment.
Starting Monday, the upcoming week will be vital for investors, particularly with Finance Minister Nirmala Sitharaman set to outline the economic direction through the Union Budget announcements for 2025-26, which will be made on Saturday. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., noted the importance of this week for both equity markets and the broader economy, with a special trading session on February 1 to gauge real-time reactions to the budget.
Market participants are optimistic about potential measures to stimulate the slowing economy and enhance consumption while maintaining fiscal discipline. Manish Goel, founder and MD of Equentis Wealth Advisory Services, pointed out that recent comments from US President Donald Trump about making America more business-friendly could affect global stock markets, including India’s. He mentioned that Trump’s encouragement for businesses to establish production in the US, coupled with warnings of tariffs on imports—particularly targeting Canada, Mexico, and China—could create opportunities for India to boost exports to the US, especially in sectors affected by changing trade dynamics. However, he also cautioned that this situation could challenge Indian businesses reliant on affordable imports or those facing increased global competition.
In the coming week, the earnings reports of major companies such as Tata Steel, Bajaj Auto, Maruti, Tata Motors, ONGC, Cipla, and IndusInd Bank will be closely watched. On the global stage, key events like the US FOMC meeting and statements from the US President are also expected to sway market sentiment, with most anticipating no immediate action from the Fed due to recent inflation rises and associated risks.
Last week, the markets continued their consolidation trend for a second week, losing nearly half a percent amid mixed signals. Caution was prevalent due to concerns over potential volatility in global markets ahead of Trump’s inauguration, given his previous comments on trade tariffs and “America First” policies. Mixed corporate earnings and ongoing selling pressure from foreign institutional investors (FIIs) further dampened sentiment. The benchmark indices, Nifty and Sensex, experienced significant fluctuations before closing at 23,092.20 and 76,190.46, respectively.
Sector-wise, most faced challenges, with the realty index dropping over 9 percent, followed by declines in energy and auto sectors. However, rebounds in IT and FMCG sectors helped mitigate losses for the benchmarks. The broader market experienced intensified selling, with midcap and smallcap indices falling between 2.5 percent and 4 percent.
Domestic markets remained under pressure from foreign selling, with data from the National Securities Depository Limited (NSDL) indicating that Foreign Portfolio Investors (FPIs) sold equities worth Rs 19,759 crore from January 20 to January 24. In total, FPIs have withdrawn Rs 64,156 crore from Indian markets in January alone.
From a technical standpoint, experts indicate that the benchmarks are susceptible to further declines, with critical support for the Nifty in the 22,700-22,900 range. Any potential recovery is expected to encounter strong resistance in the 23,450-23,650 zone.
