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Published: January 29, 2024
Updated: January 29, 2024

Market Expectations Soar as Interim Budget 2024 Looms Large

As the eagerly anticipated interim budget for 2024-25 approaches, analysts predict an eventful week for the markets. Key factors contributing to the market sentiment include the budget announcement, the US Federal Reserve policy decision, and the release of quarterly earnings.

Major Drivers for the Week:

The upcoming week is poised to see significant market movements driven by the interim budget presentation by Finance Minister Nirmala Sitharaman on February 1. Analysts also highlight the crucial Federal Open Market Committee meeting on January 30 and 31, where the US Fed is expected to maintain the status quo, providing insights into future rate cut timelines.

Consolidation and Global Influences:

Market consolidation is likely as investors closely monitor the US Fed's interest rate decision and the Bank of England's monetary policy. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, emphasises the impact of heavyweights releasing their earnings during the week, contributing to stock-specific actions amid potential market consolidation.

Key Earnings Announcements:

Notable companies, including Adani Green Energy, Bajaj Finance, Bajaj Finserv, Maruti Suzuki India, Titan, and InterGlobe Aviation, are set to announce their quarterly earnings. This influx of earnings reports is expected to drive stock-specific actions throughout the week.

Crucial Macro Economic Data:

On the macroeconomic front, the Purchasing Managers' Index (PMI) data for the manufacturing sector is scheduled to be announced on Thursday, adding another layer of market insight.

Market Sentiment and Budget Expectations:

Analysts view this week as pivotal, aligned with the key budget event that traditionally sets the market direction. Analysts anticipate a budget focused on retaining the growth roadmap with a touch of populism, considering its interim nature.

Global Landscape's Influence:

Experts emphasize the impact of global factors such as policy rate decisions of major countries, geopolitical developments, and movements in US bond yields, the dollar index, and crude oil prices on the market beyond domestic considerations.

As the markets brace for an eventful week, characterized by the interim budget, crucial policy decisions, and earnings announcements, investors remain on their toes. The intersection of domestic and global factors creates an intricate landscape, promising a week of heightened market activity and potential opportunities for investors.