The upcoming week's market sentiment will be shaped by a mix of key domestic and global events. Monday may see some more market reaction to the fingerprint of the Union Budget 2025. With the earnings season underway and release of key economic data, especially the RBI monetary policy, the week is set to be an action-packed one.
The RBI Monetary Policy Committee will meet to decide the interest rate, cash reserve ratio and the reverse repo rate. Morevoer, this is set to be the first policy by the under the new RBI Governor Sanjay Malhotra after the Union Budget presentation by Finance Minister Nirmala Sithraman on Saturday.
After an active session of listing and maiden issues closing in the previous week, activities in the primary market will be just as active in the upcoming five days with five new issues opening and two listings.
On the global front, all eyes will be on the fallout of Donald Trump's tariff decisions on Mexico, Canada and China. The US' Department of Labour will also release the Initial Jobless Claims data.
In domestic markets, shares of Nestle Ltd., Oil and Natural Gas Corporation Ltd., GAIL (India) Ltd. and Power Grid Corporation Of India Ltd. will turn ex-date for the issue of interim dividends.
Markets This Week
A quick recap of the week first. The Indian equity benchmark indices closed higher four days in a row, but extended its monthly losing streak.
The NSE Nifty 50 ended 260.05 points, or 1.12% up at 23,509.55, and the 30-stock BSE Sensex ended 740.76 points, or 0.97% higher at 77,500.57.
The NSE Nifty Bank also closed higher at 49,587.20, up 0.56%. The stock market will remain open on Feb. 1, on account of Budget 2025 that is set to take place.
"All the sectors ended in green with Energy and FMCG being the major outperformers. Mid and Smallcap space advanced by 1.89% and 2.11% and outshined the Frontline Index," said Aditya Gaggar, director of Progressive Shares.
Domestic Cues And Q3 Earnings
Markets are set to react to the programmes and plans enumerated by the Union Budget 2025 that was announced on Feb. 1 by Finance Minister Nirmala Sitharaman.
Friday will be instrumental in determining domestic cues of the domestic economy and markets. The Reserve Bank of India will hold the year's first Monetary Policy Committee meeting between Feb. 5 and 7.
The RBI will also be setting the Cash Reserve Ratio and the Reverse Repo Rate, besides benchmark interest rate.
"As we look to the upcoming week, there are several important events on the horizon, including the MPC outcome, the Delhi state election, and developments regarding US tariffs. These events present an opportunity for market participants to remain engaged and informed, as they are likely to introduce some volatility. Embracing a proactive approach with effective risk management will be essential in navigating this dynamic landscape," Osho Krishnan, senior analyst, technical and derivatives, Angel One said.
Several prominent companies are set to release their earnings this week, providing key insights into the performance of various sectors. . The lineup includes Swiggy Ltd., Welspun Enterprises Ltd., Tata Power Ltd., Aurobindo Pharma Ltd., and more.
Global Cues
Monday will see the release of 'Consumer Price Index' (Year-On-Year) data for the Eurozone . This measures the the change in the prices of goods and services contained in a basket of consumer items. On the same say, S&P Global will also be releasing Manufacturing Purchasing Managers' Index data for the month of January. A reading above fifty suggests the manufacturing sector is expanding, while a reading below fifty suggests the manufacturing sector is in contraction. The US' Institute for Supply Management will also release ISM Manufacturing PMI and ISM Manufacturing prices
On Tuesday, the US Bureau of Labor Statistics will release data on JOLTS Job Openings for the month of December.The data helps measure job vacancies.
Wednesday will see the release of US ADP Nonfarm Employment Change data which a measure of the monthly change in non-farm, private employment . The services PMI data will also be released on that day, along with ISM non manufacturing employment and PMI data.
The US Energy Information Administration will also release crude oil inventory data on Wednesday.
On Thursday, the UK's Bank of England will announce its interest rate decision. The US' Department of Labour will also release Initial Jobless Claims data.
Friday will witness the US releasing average hourly earnings (month-on-month) for January, non farm payroll data and unemployment rate data for January,
China's markets will be closed due to Chinese New Year on Monday.
Primary Market Action
India's primary market is set to gain more momentum going into the week starting Feb. 3, with five new issues, three closing and two listing.
Among the new public issues, Dr Agarwal's Health Care Ltd. will list in the mainboard segment. Chamunda Electricals Ltd. will open on Jan. 4 at a price band of Rs 47 to Rs 50 per share with a face value of Rs 10 each.
The firm will open for bidding on Feb. 4 and close on Feb. 6. The company plans to raise Rs 14.60 crore through the offering.
On the listings front, two companies will debut on the national bourses in the upcoming week.
Dr Agarwal's Health Care Ltd.'s Rs 3,027.26-crore initial public offering has been subscribed 1.55 times on its third and final day of bidding on Friday, led by solid demand from qualified-institutional buyers.
In the SME space, Malpani Pipes And Fittings Ltd. will be listed on BSE Ltd. on Friday after the issue was subscribed 21.49 times on its second day, led by retail investors.
Corporate Action
Some of the key companies have some announcements lined up for the week ahead include shares of Nestle Ltd., Oil and Natural Gas Corporation Ltd., GAIL (India) Ltd. and Power Grid Corporation Of India Ltd. will turn ex-date for the issue of interim dividends. Meanwhile, shares of AGI Infra Ltd. will turn ex-date for its stock split.
The table below shows the full list of corporate actions for the upcoming week.
Also Read: Income Tax Slabs Rejig To Hike In Exemption Limit — All About The Budget Bonanza For Middle Class
Delhi Elections
The Delhi Legislative Assembly election for all 70 constituencies is scheduled to be held on Feb. 5 and the results will be declared on Feb 8. The key parties in the fray are the Bhartiya Janta Party (BJP), the Aam Aadmi Party (AAP) and the Indian National Congress.
The BJP is making a push to regain power in the national capital after more than 26 years, emphasising its "Parivartan" (change) campaign and targeting the Arvind Kejriwal-led AAP over corruption charges.
Meanwhile, the Congress, which governed Delhi from 1998 to 2013, has struggled to find its footing in the political landscape over the past decade. The elections will be a crucial juncture for the AAP which rose to power riding on the wave of anti-corruption agitation led by social activist Anna Hazare.
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