After a long weekend break, the domestic market is likely to open on a positive note on Monday, thanks to positive global cues. The upcoming interim Budget on February 1 and the ongoing result season will likely anchor market movement this week. Nifty futures at 21,548 at Gift Nifty against Nifty February futures close of 21,630 indicate a gap opening of 90 points for Nifty.

Global cues are positive, with most Asian stocks up over one per cent. Chinese and Hong Kong markets are up following the PBOC’s 0.5% cut in the reserve ratio, which is aimed at stimulating growth and financial liquidity. Investors, however, await additional details on China’s comprehensive stimulus plans.

However, the continuous selling by foreign portfolio investors and mixed corporate results keep the market under pressure.

Analysts expect stock-specific actions during the ongoing earnings season., while macro movement depends on global sentiment, especially cues from the policy rate decisions of major countries.

“This week is poised to be pivotal, marked by a series of significant events, with the Budget taking center stage. However, the finance minister’s indication of a modest, vote-on-account budget suggests a lack of extravagant announcements,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Another critical event to watch is the outcome of the US Federal Reserve’s policy meeting scheduled for January 31, which could provide insights into the potential timing of interest rate cuts. Concurrently, ongoing Q3 earnings releases are contributing to substantial stock price movements, with numerous companies slated to announce their results in the week, he added.

According to Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, “FPIs continued to be sellers in the cash market having sold equity worth ₹27,664 crore through January 25.FPIs were sellers in autos and auto ancillary, media and entertainment and marginally in IT. They bought in oil and gas, power and selectively in financial services,” he said.

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