Indian Markets Gear Up for Game-Changing Week Amid Key Events

Indian markets face a critical week with key events like the Union Budget, macroeconomic data, Q3 earnings, and US Fed decisions. Investors keenly await Finance Minister Sitharaman's budget announcements. Global factors, including US policies, also impact market sentiment amid fluctuating indices and foreign investor pressure.

Indian markets are preparing for a pivotal week as a series of influential events loom, including the Union Budget, macroeconomic data releases, Q3 earnings reports, and pivotal US Federal Reserve policy decisions. Finance Minister Nirmala Sitharaman's budget announcement is highly anticipated for its potential direction-setting for the 2025-26 fiscal year, despite being scheduled for a Saturday.

"The upcoming week is crucial not only for equity markets but also for the broader economy," stated Ajit Mishra, SVP of Research at Religare Broking Ltd. "The Union Budget is set to unveil on February 1, accompanied by a special trading session for immediate market responses. Investors hope for measures that can invigorate the slowing economy while adhering to fiscal discipline," Mishra added.

Manish Goel, founder and MD of Equentis Wealth Advisory Services, highlighted that US President Donald Trump's recent business-friendly announcements could impact global markets, including India. "Trump's encouragement of US production with low taxes, coupled with threats of tariffs targeting countries like Canada, Mexico, and China, may open trade opportunities for India," Goel said. "Still, challenges remain for businesses reliant on affordable imports," he cautioned.

Companies such as Tata Steel, Bajaj Auto, Maruti, Tata Motors, ONGC, Cipla, and IndusInd Bank have upcoming earnings, capturing market interest. Additionally, global developments like the US FOMC meeting and statements from the US President will further influence market sentiment.

The previous trading week saw Indian markets falter, with indices losing nearly half a percent under mixed signals, including caution surrounding Trump's trade policy remarks and ongoing foreign institutional investor (FII) sell-offs. Indices like the Nifty and Sensex fluctuated sharply, finally closing at 23,092.20 and 76,190.46, respectively, amid intense selling pressure in sectors such as realty, energy, and auto.

Sustaining broader market pressures, midcap and smallcap indices fell between 2.5 and 4 percent, while IT and FMCG sectors saw some recovery, softening benchmark losses. Foreign Portfolio Investors (FPIs) divested equities worth Rs 19,759 crore over the week, with a total outflow of Rs 64,156 crore from Indian markets in January, according to National Securities Depository Limited (NSDL) data.

Technically, market experts indicate possible further declines for benchmarks, with crucial support levels at the 22,700-22,900 range for the Nifty. Any recovery may encounter significant resistance between the 23,450-23,650 zone, experts advise. (ANI)

(With inputs from agencies.)