Budget, Fed Meet and Q3 Results to Shape Indian Stock Market Next Week

Mumbai: The Indian stock market is expected to witness significant volatility in the coming week as several key events are set to influence investor sentiment. The Union Budget 2026, the US Federal Reserve’s policy meeting, quarterly corporate results, and global developments will be crucial factors determining the market direction.

Last week, the markets experienced sharp fluctuations amid selling pressure and global uncertainties. Investors are likely to trade cautiously in the upcoming week, closely watching these major triggers before making any significant moves.

On Friday, the markets ended on a weak note with a steep decline, resulting in a bearish finish for the week. Profit booking, continuous foreign fund outflows, and geopolitical tensions added pressure on the indices.

The BSE Sensex dropped by 770 points or 0.94 percent to close at 81,537.70, while the NSE Nifty fell 241 points or 0.95 percent to settle at 25,048.65.

Market experts highlight that Nifty’s immediate resistance lies at 25,300, followed by key levels at 25,400 and 25,600. On the downside, support is expected around 24,880 and 24,587. A fall below 24,350 could accelerate the decline further.

Union Budget 2026 to Set Market Tone

The most awaited event of the week will be the Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman in Parliament on Sunday, 1 February. Investors will focus on tax-related announcements, government expenditure plans, infrastructure projects, and measures aimed at boosting economic growth.

The budget will indicate the government’s priorities, which will play a decisive role in the market’s direction in the near term.

Global Cues from US Fed Meeting and Trade Talks

On the international front, all eyes will be on the US Federal Reserve meeting scheduled for 27-28 January. Experts generally expect no change in interest rates this time. However, future guidance by Fed officials on interest rates could impact global investor sentiment and capital flows.

Additionally, investors will monitor developments related to the India-US trade agreement. Union Minister Ashwini Vaishnaw recently stated that India remains active in global trade negotiations, while US President Donald Trump has expressed optimism about the deal.

Corporate Earnings and Precious Metals Also in Focus

The quarterly earnings season will continue with several major companies announcing their results for the third quarter of fiscal 2026. These earnings reports will provide further cues for market participants.

Meanwhile, rising prices of gold and silver have attracted attention amid geopolitical tensions and a weaker US dollar. Gold prices surged close to $5,000 per ounce, setting new record highs above $4,967. Silver also reached near-record levels of approximately $100 per ounce.

These factors combined suggest a week of cautious trading with significant movements expected as investors digest these important domestic and global developments.