After a bruising week marked by heavy selling pressure, Indian equities face another action-packed period ahead. The upcoming Union Budget, Federal Reserve deliberations, quarterly earnings deluge, and international developments are set to dictate the benchmark indices’ trajectory starting next week.
Sensex and Nifty both logged weekly losses, closing Friday lower as foreign funds continued their exodus and profit-taking intensified against a backdrop of escalating geopolitical risks. The Sensex dropped 0.94% to 81,537.70, while Nifty fell 0.95% to 25,048.65.
Technical charts suggest Nifty faces resistance at 25,300, followed by 25,400-25,600. Supports are clustered around 24,880-24,587, with 24,350 as a critical downside trigger.
The marquee event is undoubtedly the 2026 Union Budget, tabled by Nirmala Sitharaman on Sunday. Investors are laser-focused on potential tax tweaks, capex allocations for infrastructure, fiscal strategies, and growth-boosting initiatives that could ignite or dampen sentiment across sectors.
Across the Atlantic, the Fed’s two-day meet from January 27 could influence emerging markets like India through its rate outlook. Steady rates are expected, but any hints on future cuts or hikes will ripple through global portfolios.
Q3 results from blue-chip companies will provide fresh insights into corporate health, potentially sparking rallies or routs in individual stocks. Optimism around India-US trade pacts, echoed by key figures, offers a counterbalance to headwinds.
Gold’s rally to record highs near $5,000/oz and silver’s climb to $100/oz highlight investor flight to safety amid tensions and dollar weakness, indirectly pressuring risk assets like equities.
With so many moving parts, next week’s trading promises intrigue and opportunity for those who decipher the signals astutely.
