Markets Ahead: After Effects Of Budget 2025, RBI's MPC Decision To Drive Trading This Week, Say Analysts

Cues from the global landscape will influence investors in the coming week, the experts said. Further, US and India are also scheduled to reveal the manufacturing PMI data for January on Monday.

The RBI’s monetary policy committee (MPC) is schedule to hold its bi-monthly meeting in the week from February 5-7 and reveal the decision regarding the key interest rates and fiscal policies going ahead.

Source : ABPLIVE AI

The interest rate decision of the Reserve Bank of India (RBI) and quarterly earnings from corporates would drive markets in the coming week, analysts noted. The RBI’s monetary policy committee (MPC) is schedule to hold its bi-monthly meeting in the week from February 5-7 and reveal the decision regarding the key interest rates and fiscal policies going ahead.

These factors along with cues from the global landscape will influence investors in the coming week, the experts said. Further, US and India are also scheduled to reveal the manufacturing PMI data for January on Monday, reported PTI. Market analysts also said that the impact of the Union Budget 2025, presented on Saturday, could also have some lingering effects in the week.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “Investors will closely study the fine prints of the Budget policies and market focus will shift back to the corporate earnings/outlook and RBI's interest rate decision to be announced on Friday.”

The major earnings lined up for the week include P C Jeweller, Titan, Tata Power, Asian Paints, Bharti Airtel, ITC, MRF, NHPC, LIC, M&M, SBI, and Apollo Tyres. Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd added that it remains to be seen if the central bank will adopt a softer approach and announce any rate cut in this week. “However, investors need to watch out for global developments, as any uptick in US bond yields and FII selling could dampen sentiment,” he noted.

Sharing his perspective on the coming week, Osho Krishnan, Senior Analyst, Technical and Derivatives, Angel One, said, “PMI data for the manufacturing and services would also be tracked by investors. As we look to this 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.”

Notably, the equity markets witnessd a major rally last week. The BSE Sensex climbed 1.315.5 points or 1.72 per cent in the week, while the NSE Nifty50 jumped almost 400 points or 1.68 per cent during the period.