The Indian stock market is anticipated to stay volatile in the upcoming week as investors monitor significant events such as the Union Budget 2026, the US Federal Reserve meeting, corporate earnings, and global developments. Following a turbulent week with selling pressure and global concerns, market participants are likely to trade cautiously, awaiting clear signals from these pivotal triggers.
The domestic equity market concluded the week on a weak note after a sharp decline on Friday, attributed to profit booking, ongoing foreign investor selling, and geopolitical uncertainties that dragged the benchmarks lower. The Sensex closed at 81,537.70, down 770 points (0.94 percent), while the Nifty ended at 25,048.65, falling 241 points (0.95 percent).
An analyst mentioned, “Immediate resistance levels are at 25,300, followed by 25,400 and 25,600. On the downside, support levels are seen at 24,880 and 24,587. A breach below 24,350 could heighten downside pressure and accelerate corrective movements.”
One of the major drivers in the upcoming week will be the Union Budget 2026, scheduled for presentation by Finance Minister Nirmala Sitharaman in Parliament on Sunday, February 1. Investors will keenly observe announcements regarding taxes, government spending, infrastructure projects, and measures to stimulate economic growth, as the budget’s tone and priorities may influence the stock market’s short-term trajectory.
Global markets will also be impacted by the US Federal Reserve’s policy meeting from January 27 to January 28. While experts anticipate no change in interest rates, comments from Fed officials on future rate strategies could affect global investor sentiment and capital flows. The earnings season will remain in focus as several major companies prepare to disclose their third-quarter results for FY26.
Developments concerning a potential India-US trade deal will be closely watched, with Union Minister Ashwini Vaishnaw expressing optimism after positive remarks from US President Donald Trump. Moreover, the surge in gold and silver prices is attracting attention, with gold nearing $5,000 per ounce and silver reaching a record high close to $100 per ounce, driven by geopolitical tensions and a weaker US dollar, making precious metals more affordable for global buyers.
