Key factors like the Delhi polls outcome, inflation data, and Q3 earnings will guide the market outlook for the next week of February.
The announcement of the Delhi Assembly election results was another significant event as the Bharatiya Janata Party (BJP) secured a strong victory in the Assembly elections, winning 48 out of 70 seats.
Analysts believe this win could contribute to positive investor sentiment. Macroeconomic data will be another major focus for investors. Inflation and industrial output data will be released on February 12.
Analysts project January inflation will drop to 4.69 percent from 5.22 percent in the previous month, which could influence the RBI’s next policy decision. Meanwhile, they expect industrial production growth to slow to 4.1 percent from 5.2 percent.
Corporate earnings will also impact stock market movement this week. Major companies such as Eicher Motors, Apollo Hospitals, Vodafone Idea, Hindustan Aeronautics, and Muthoot Finance will report their quarterly results.
The financial performance of these companies will shape investor confidence. Foreign institutional investors (FIIs) continued their selling spree last week, pulling out Rs 8,852 crore from the market.
However, domestic institutional investors (DIIs) provided some stability by investing Rs 6,449 crore. “Nifty remained volatile throughout the week but managed to close positive for the second consecutive week, sustaining above the 23,450–23,500 zone, signaling a potential bottom reversal,” Puneet Singhania, Director of Master Trust Group said.
He added that the index continues to trade decisively above the critical 21-day EMA, reinforcing positive sentiment and indicating further upside momentum.
“Despite short-term volatility, the trend remains positive, supporting a ‘Buy on Dips’ strategy,” Singhania mentioned.
On the global front, several macroeconomic indicators will play a crucial role in influencing market trends. The US is expected to release inflation data for January on February 12, showing core inflation at 3.2 percent and headline inflation at 2.9 percent year-on-year (YoY).
Any deviation from these estimates could impact the US Federal Reserve’s future interest rate decisions.
Additionally, UK GDP data and China’s inflation numbers will also be watched closely. In the last week, the domestic equity benchmarks continued their upward momentum as the Nifty advanced by 0.33 percent to close at 23,559.95, while the BSE Sensex rose 0.46 percent to settle at 77,860.
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