Budget 2022, Q3 earnings to macro triggers: Action-packed week for stock market

Expecting union budget 2022 to attract maximum limelight at stock market next week; Ajit Mishra, VP Research at Religare Broking said, “This week is critical, not only for the equity market, but for the economy as a whole. We have the Union Budget scheduled for February 1 and we expect the government to continue with growth agenda but with a road map for fiscal prudence. This week marks the beginning of a new month also and auto sales start pouring in from February 1. Besides, we have manufacturing and services PMI data also scheduled during the week.”

Ajit Mishra of Religare Broking went on to add that Union Budget would set the tone for the domestic markets amid the global sell-off citing, “Volatility remains high during the budget week so participants should continue with a cautious stance.”

Expecting continuation of high volatility in stock market next week as well; Santosh Meena, Head of Research at Swastika Investmart Ltd said, “This week is going to be very important and extremely volatile on the back of the Union Budget however the good part this time is that the market is heading to the budget on a very light note and there is a high probability of a post-budget rally. A similar trend was visible last year where the market witnessed a pre-budget sell-off and then there was a post-budget rally.”

On triggers other than union budget 2022, Santosh Meena of Swastika Investmart said, “The rising dollar index and rising crude oil prices are other issues for emerging markets like India. We are in the middle of the Q3 earning session and so far earning session remains good while we have lots of important earnings lined up this week.”

Advising stock market investors to keep an eye on Russia-Ikraine conflict; Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services said, “While the US Fed outcome is now behind, several other factors including ongoing result season, Union Budget on Feb 1st and Russia-Ukraine conflicts would keep the market volatility high this week as well.”

Macro-economic data that may impact stock market next week; Vinod Nair, Head of Research at Geojit Financial Services said, “This week, the release of PMI data for January will be another key domestic data point that the investors should watch.”