Market Forecast: RBI Policy, Budget Reactions, and Global Economic Signals to Shape Next Week
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Synopsis
The Indian stock market braces for a week of volatility driven by the Reserve Bank of India's Monetary Policy Committee meeting, reactions to the Union Budget 2025, and global economic developments.
Key Takeaways
- RBI's MPC meeting will set key interest rates.
- Union Budget 2025 presented by Finance Minister Nirmala Sitharaman.
- Global economic events will impact investor sentiment.
- Five new IPOs and two listings to watch.
- Strong performance from midcap and smallcap stocks.
Mumbai, Feb 2 (NationPress) The Indian stock market is gearing up for a week of substantial fluctuations, influenced by several factors that could sway investor sentiment, including the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, responses to the Union Budget 2025, and significant global economic events.
Market participants will pay close attention to the effects of the Union Budget 2025, unveiled by Finance Minister Nirmala Sitharaman on February 1.
The RBI's MPC meeting stands out as a pivotal event, where crucial decisions regarding key interest rates, the Cash Reserve Ratio (CRR), and the Reverse Repo Rate will be made.
This marks the first policy decision under the new RBI Governor Sanjay Malhotra, making it particularly significant for market perceptions.
Globally, investors will monitor the economic ramifications of US President Donald Trump's tariff strategies affecting Mexico, Canada, and China.
Next week, the US Department of Labor is set to release data on Initial Jobless Claims, providing valuable insights into employment trends.
Key economic indicators, such as the Eurozone Consumer Price Index (CPI) and Purchasing Managers' Index (PMI) data from S&P Global, will also be closely watched.
The Bank of England is expected to declare its interest rate decision, further amplifying the list of major global happenings.
The primary market is anticipated to remain vibrant, with five fresh IPOs opening for subscription and two listings on the horizon.
Recent weeks have already witnessed notable market activity.
The NSE Nifty closed at 23,509.55, reflecting a gain of 260.05 points or 1.12 percent, while the BSE Sensex surged by 740.76 points or 0.97 percent, ending at 77,500.57.
The Nifty Bank index also recorded gains, closing at 49,587.20, up 0.56 percent.
Sector indices exhibited strong performance, particularly in Energy and FMCG stocks, which led the market rally.
Midcap and Smallcap stocks outshone the broader market with gains of 1.89 percent and 2.11 percent, respectively.
