Markets Ahead: Budget 2025, Q3 Earnings, US Fed's Interest Rate Decision To Influence Traders, Say Analysts

Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2025 on February 1, and this is anticipated to influence the sentiment of traders in the coming week.

The upcoming Union Budget and the US Federal Reserve’s interest rate decision will be keenly observed by investors and traders in the coming week, analysts noted. Further, the sentiment in the market will be driven by the Q3 earnings season, experts stated.

Macroeconomic indicators such as the fluctuations in rupee and dollar, the trading sentiment of foreign investors, and changes in the global oil benchmark Brent crude will have a huge impact on stock market investors and stakeholders, reported PTI.

Sharing an outlook on the markets ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “All eyes are now on the upcoming Union Budget, scheduled for February 1, as the market looks for a meaningful trigger to shift sentiment positively. The ongoing Q3 earnings season has been lacklustre so far, especially in the consumption and financial sectors.On the global front, the Federal Open Market Committee (FOMC) policy meeting will be critical.”

The analyst said that it will be crucial to track changes in the US bond yields and the dollar index, and keep an eye on reversal signs in the two areas. FII flows will also have an impact on the Indian equity market, he added.

Notably, the stock markets will continue to remain functional and open for trading on February 1, 2025. Major earnings lined up in the week include Bajaj Auto, Tata Motors, ONGC, IndusInd Bank, Tata Steel, and Maruti. The benchmark equity indices slipped last week. The BSE Sensex took a hit of more than 400 points or 0.55 per cent, while the NSE Nifty50 tanked 111 points or 0.47 per cent.

“Domestic equities are expected to trade within a broad range with some volatility amidst the Q3 result season, unfolding of the US President Trump's economic policies and the Union Budget on Saturday. PSU and capex-themed stocks such as railway, defence, capital goods will be in focus ahead of the Budget,” Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd added.