The Indian stock market is expected to remain volatile in the coming week as investors keep a close eye on several major events, including the Union Budget 2026, the US Federal Reserve meeting, ongoing corporate earnings, and global developments.
After a choppy week marked by selling pressure and global worries, market participants are likely to trade cautiously while looking for clear signals from these key triggers.
The domestic equity market ended the week on a weak note after slipping sharply on Friday. Profit booking, continued foreign investor selling, and uncertainty over geopolitical issues pulled the benchmarks lower.
The Sensex dropped 770 points, or 0.94 percent, to close at 81,537.70, while the Nifty fell 241 points, or 0.95 percent, to end at 25,048.65.
"Immediate resistance is placed at 25,300, followed by 25,400 and 25,600 levels," an analyst said.
"On the downside, support is seen at 24,880 and 24,587. A breakdown below 24,350 could intensify downside pressure and accelerate corrective moves," the analyst stated.
One of the biggest drivers next week will be the Union Budget 2026, which Finance Minister Nirmala Sitharaman will present in Parliament on Sunday, (February 1).
Investors will watch closely for announcements related to taxes, government spending, infrastructure projects, and measures to boost economic growth.
The budget's tone and priorities could decide the short-term direction of the stock market.
Global markets will also be influenced by the US Federal Reserve's policy meeting scheduled from January 27 to January 28.
Experts believe the central bank is likely to keep interest rates unchanged. However, comments from Fed officials about future rate plans could impact global investor sentiment and capital flows.
The earnings season will continue to remain in focus as several major companies are set to announce their third-quarter results for FY26.
Developments related to a potential India-US trade deal will also be closely monitored. Union Minister Ashwini Vaishnaw recently said India is actively involved in global trade discussions, expressing confidence after US President Donald Trump spoke positively about reaching an agreement between the two countries.
Meanwhile, rising gold and silver prices are adding another layer of attention. Gold surged close to the $5,000 per ounce mark, hitting a new high above $4,967, driven by geopolitical tensions and a weaker US dollar.
Silver also touched an all-time high near $100 an ounce. The softer dollar has made precious metals cheaper for buyers worldwide, boosting demand.
(With inputs from IANS)
