Market Outlook: The movement of the stock market this week will be decided by major events like the US Federal Reserve’s decision on interest rates, the upcoming general budget and the results of companies in the third quarter. Analysts said that apart from this, global factors, attitude of foreign investors, rupee-dollar exchange rate and crude oil will also affect the trading in the stock market.
Santosh Meena, Head of Research, Swastika Investmart Limited, said, “Now all eyes are on the general budget on February 1, as the market is waiting for some signal to change the sentiment positively. “The third quarter results have been lackluster so far, especially in the consumption and financial sectors.”
He said that on the global front the policy meeting of the Federal Open Market Committee (FOMC) will be important. Apart from this, it will be important to keep an eye on the movements in US bond yields and dollar index. Meena said that signs of reversal in both these sectors can bring positivity in global markets. He said that for the Indian equity market, FII inflows will continue to play an important role.
Stock markets will be open for trading on Saturday, February 1 due to the presentation of the general budget. BSE and NSE had announced this last month. Ajit Mishra, senior vice-president (research), Religare Broking Ltd, said this week is important not only for the equity markets but also for the economy, as the general budget is to be presented on February 1.
Mishra said that this week many companies including Tata Steel, Bajaj Auto, Maruti, Tata Motors, ONGC and IndusInd Bank are going to release their quarterly results. “On the global front, key events like the FOMC meeting in the US and the US President’s statement will also impact the market sentiment,” he said.
Siddharth Khemka, Head of Research (Asset Management), Motilal Oswal Financial Services Ltd, said, “Domestic stock markets remained in a broad range with some volatility amid Q3 results, US President’s economic policies and the Union Budget on Saturday. Expecting business in.” He said that ahead of the budget, stocks based on railways, defence, capital goods like PSUs and capital expenditure will be in focus.