Market outlook: RBI policy, Budget reactions, global economic cues key factors for next week

Mumbai:  The Indian stock market is set for a volatile week, with multiple factors influencing investor sentiment such as the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, reactions to the Union Budget 2025, and global economic events.

Investors will closely track the impact of the Union Budget 2025, which was presented by Finance Minister Nirmala Sitharaman on February 1.

The RBI’s MPC meeting will be another major event, as it will decide key interest rates, the Cash Reserve Ratio (CRR), and the Reverse Repo Rate.

This will be the first policy decision under the new RBI Governor Sanjay Malhotra and it will be more crucial for market sentiment.

In the global market, investors will keep an eye on the economic impact of US President Donald Trump’s tariff decisions on Mexico, Canada, and China.

The US Department of Labour will also release Initial Jobless Claims data next week which will provide insights into employment trends in the country.

Investors will also track key economic indicators, such as the Eurozone Consumer Price Index (CPI) and Purchasing Managers’ Index (PMI) data from S&P Global.

The Bank of England will also announce its interest rate decision, adding to the list of major global events.

The primary market is set to remain active with five new IPOs opening for subscription and two listings scheduled.

Markets have already shown strong movement in the past week.

The NSE Nifty ended at 23,509.55 with a gain of 260.05 points or 1.12 per cent, while the BSE Sensex rose by 740.76 points or 0.97 per cent to close at 77,500.57.

The Nifty Bank index also saw gains during the week by ending at 49,587.20, up 0.56 per cent.

Sectoral indices performed well, with Energy and FMCG stocks leading the rally.

Midcap and Smallcap stocks outperformed the broader market with a gain of 1.89 per cent and 2.11 per cent, respectively.

–IANS