After an immensely volatile and eventful week for the market with a four-month closing low on January 27, there may be little for the traders with the upcoming budget week. With crucial events like the Union Budget, the US Federal Reserve's commentary, and corporate earnings and sales numbers, the market may yet see some more ups and downs. Additionally, more movements in the Adani Group shares can be expected.
Here are the key factors that will impact the market and keep the traders busy in the coming week:
Union Budget
The Finance Minister, Nirmala Sitharaman, is all set to present the Union Budget 2023 on February 1. This is one of the most crucial events, not only for the market but also for the country's economy. There will also be expectations that the budget will be more balanced, especially considering that this will be the last budget for the present government before the general elections.
The aim of the budget will be to reduce the deficit with a large amount of focus on infrastructure, EVs, green energy, digital technology, and more. However, a tweak in the tax structure could have a major impact on people and eventually the market.
FOMC Meet
The second most important event is the US Federal Reserve meeting, which will be held from January 31 to February 1. The outcome of this event would be monitored by global investors. The Fed is trying to avoid recession while at the same time focusing on the inflation target in order to soften the landing for the US economy.
Corporate earnings
With the corporate earnings season taking up pace, there are close to 600 companies that will be announcing their quarterly numbers in the coming week, including State Bank of India, HDFC, Tech Mahindra, Larsen & Toubro, Sun Pharma, Britannia Industries, BPCL, ITC, and more.
Auto Sales
Like every month, the monthly auto sales numbers are expected to be announced on February 1, which means on the day of the budget there are many more things that could affect the market. Your stocks to watch list should include Tata Motors, TVS Motors, Maruti Suzuki, Ashok Leyland, Hero MotoCorp, Mahindra & Mahindra, Eicher Motors, and Escorts.
Domestic economic data points
The fiscal deficit and infrastructure output numbers are expected to be released on January 31, and the S&P Global Manufacturing PMI for January will be released on February 1.
The foreign exchange reserves for the week ending on January 27 are also expected to be released on February 3.
