he Indian stock market is poised for a volatile week, influenced by a confluence of factors including the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, reactions to the Union Budget 2025, and significant global economic events.
Investors are closely monitoring the impact of the Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1. The Budget’s provisions and fiscal measures are expected to play a crucial role in shaping market sentiment.
A major event on the domestic front is the RBI’s MPC meeting, where key decisions on interest rates, the Cash Reserve Ratio (CRR), and the Reverse Repo Rate will be made. This meeting gains additional significance as it marks the first policy decision under the new RBI Governor, Sanjay Malhotra, making it pivotal for investor sentiment.
On the global stage, investors are paying attention to the economic ramifications of US President Donald Trump’s tariff decisions on Mexico, Canada, and China. Additionally, the US Department of Labor is set to release Initial Jobless Claims data next week, providing insights into employment trends in the United States.
Key economic indicators such as the Eurozone Consumer Price Index (CPI) and the Purchasing Managers’ Index (PMI) data from S&P Global will also be under scrutiny. The Bank of England’s upcoming interest rate decision adds to the list of major global events that investors will be tracking.
In the primary market, activity remains robust with five new IPOs opening for subscription and two listings scheduled for the week.
The markets have already demonstrated strong movement in the past week. The NSE Nifty ended at 23,509.55, gaining 260.05 points or 1.12%, while the BSE Sensex rose by 740.76 points or 0.97% to close at 77,500.57. The Nifty Bank index also saw gains, ending at 49,587.20, up 0.56%.
Sectoral indices performed well, with Energy and FMCG stocks leading the rally. Midcap and Smallcap stocks outperformed the broader market, posting gains of 1.89% and 2.11% respectively.
As these multiple factors converge, investors are gearing up for a potentially turbulent week in the Indian stock market.
