Share Market Outlook for the Coming Week:
Finance Minister Nirmala Sitharaman presented the Union Budget on February 1. A special trading session of the stock market was organized that day, despite it being a Saturday, to coincide with the Budget. However, the Indian market remained stable during this session, as investors did not receive significant responses from the Budget announcements. The benchmark index Nifty fell by 26 points to close at 23,318, while the Sensex rose marginally by 5 points.
According to stock market analysts, the underlying trend of Nifty remains positive, but the market is facing resistance around the 23,500–23,600 levels. “If Nifty breaks through this barrier, it may start moving towards the 24,000 levels in the near term. Nifty has immediate support at 23,300 levels,” said Nagraj Shetty of HDFC Securities, as reported by Economic Times.
How the Indian stock market performs in the coming week will depend on several factors:
Budget Impact
Even though the markets closed flat on Budget Day, the impact of the Budget announcements could be seen in the coming weeks. Analysts suggest that by abolishing tax on income up to Rs 12 lakh under the new tax regime, the government aims to boost purchasing power, which will be positive for FMCG, auto, and other sectors.
RBI Policy
The Reserve Bank of India’s interest rate policy committee is set to meet later this week (February 5-7), and analysts expect the RBI to cut interest rates. The RBI has injected substantial liquidity into the banking system recently, leading many economists to believe that a rate cut is imminent, despite relatively high inflation.
World Stock Market
US stock markets closed lower on Friday, with the S&P 500 falling 4% last week, its biggest drop in four months, leading to heavy losses for chipmakers like Nvidia, Micron Technology, and Broadcom.
The US has recently decided to impose additional import tariffs on Mexico, Canada, and China, and global investors are closely monitoring Donald Trump’s tax policies.
