Action-packed week for equity market: Budget, macro data, earnings eyed

It will be an action-packed week for equity market as a host of crucial events are lined up with Union Budget hogging limelight along with macroecomic data anuncements, quarterly earnings and global trends, analysts said.

"This week is critical, t only for equity market, but for ecomy as a whole. We have Union Budget scheduled for February 1 and we expect government to continue with growth nda but with a roadmap for fiscal prudence. This week marks 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 week," said Ajit Mishra, VP Research, Religare Broking.

Mishra furr said that Union Budget would set tone for domestic markets amid global sell-off. 

"Volatility remains high during budget week so participants should continue with a cautious stance," he added.

"This week is going to be very important and extremely volatile on back of Union Budget however good part this time is that market is heading to budget on a very light te and re is a high probability of a post-budget rally. A similar trend was visible last year where market witnessed a pre-budget sell-off and n re was a post-budget rally," Santosh Meena, Head of Research, Swastika Investmart Ltd said.

Or than budget, Meena said global cues will be very important where global markets are trying to digest rising interest rate scenario but geopolitical uncertainties are ar major concern. 

" rising dollar index and rising crude oil prices are or issues for emerging markets like India. We are in middle of Q3 earning session and so far earning session remains good while we have lots of important earnings lined up this week," Meena added.

Last week, domestic market followed global reactions of Fed policy meeting, Russia-Ukraine tension amid pre-budget jitters.

In holiday-shortened last week, 30-share BSE benchmark plummeted 1,836.95 points or 3.11 per cent. 

"While US Fed outcome is w behind, several or factors including ongoing result season, Union Budget on Feb 1st and Russia-Ukraine conflicts would keep market volatility high this week as well," according to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. 

Vid Nair, Head of Research at Geojit Financial Services, said, "This week, release of PMI data for January will be ar key domestic data point that investors should watch."