Market Outlook: RBI Policy, Budget Reactions, and Global Cues to Drive Indian Stock Market Next Week
The Indian stock market is expected to experience volatility in the coming week, as key events such as the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, reactions to the Union Budget 2025, and global economic developments will significantly influence investor sentiment.
Mumbai: The Indian stock market is expected to experience volatility in the coming week, as key events such as the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, reactions to the Union Budget 2025, and global economic developments will significantly influence investor sentiment.
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Key Focus on Union Budget 2025 and RBI Policy Decision
Investors will closely analyze the Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, to gauge its impact on the economy and financial markets. This will be a crucial factor shaping market movements in the coming week.
Additionally, the RBI’s MPC meeting will be another major highlight. The central bank will decide on important monetary measures, including interest rates, Cash Reserve Ratio (CRR), and the Reverse Repo Rate. This meeting holds particular significance as it will mark the first policy decision under the new RBI Governor, Sanjay Malhotra, and will play a vital role in shaping market expectations.
Global Economic Indicators and Market Sentiment
On the global front, investor attention will turn to the economic impact of US President Donald Trump’s tariff decisions, particularly with Mexico, Canada, and China. In addition, the US Department of Labor will release Initial Jobless Claims data next week, offering insights into the employment landscape in the US.
Key economic indicators from Europe will also be closely monitored, including the Eurozone Consumer Price Index (CPI) and Purchasing Managers’ Index (PMI) data from S&P Global. Moreover, the Bank of England will announce its interest rate decision, further contributing to global market volatility.
IPO Market and Sectoral Performance
The primary market will remain active, with five new Initial Public Offerings (IPOs) opening for subscription and two listings scheduled in the coming week. These developments are expected to generate additional interest among investors.
In the past week, Indian markets showed strong performance, with the NSE Nifty closing at 23,509.55, up 1.12% or 260.05 points. The BSE Sensex also saw a significant rise, closing at 77,500.57, gaining 0.97% or 740.76 points. The Nifty Bank index saw a moderate increase of 0.56%, ending at 49,587.20.
Sectoral indices performed well, particularly in the Energy and FMCG sectors, which led the rally. Midcap and Smallcap stocks also outperformed the broader market, with gains of 1.89% and 2.11%, respectively.
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Looking Ahead
With multiple domestic and global factors influencing the market, next week promises to be eventful for investors. As the RBI’s MPC meeting, reactions to the Union Budget, and key global economic data unfold, market participants will be watching closely for any shifts in investor sentiment.
