MUMBAI —
The market outlook for the next week of February will be guided by key factors
like Delhi polls outcome, inflation data and Q3 earnings.
The announcement of the Delhi Assembly election results was
another significant event as the Bharatiya Janata Party (BJP) secured a strong
victory in the Assembly elections, winning 48 out of 70 seats.
Analysts believe this win could contribute to positive
investor sentiment.
Macroeconomic data will be another major focus for
investors. Inflation and industrial output data will be released on February
12.
January inflation is projected to drop to 4.69 per cent from
5.22 per cent in the previous month, which could influence RBI's next policy
decision.
Meanwhile, industrial production growth is expected to slow
to 4.1 per cent from 5.2 per cent.
Corporate earnings will also impact stock market movement
this week.
Major companies such as Eicher Motors, Apollo Hospitals,
Vodafone Idea, Hindustan Aeronautics, and Muthoot Finance will report their
quarterly results.
The financial performance of these companies will shape
investor confidence.
Foreign institutional investors (FIIs) continued their
selling spree last week, pulling out Rs 8,852 crore from the market.
However, domestic institutional investors (DIIs) provided
some stability by investing Rs 6,449 crore.
"Nifty remained volatile throughout the week but
managed to close positive for the second consecutive week, sustaining above the
23,450–23,500 zone, signalling a potential bottom reversal," Puneet
Singhania, Director Master Trust Group said.
He added that the index continues to trade decisively above
the critical 21-day EMA, reinforcing positive sentiment and indicating further
upside momentum.
"Despite short-term volatility, the trend remains
positive, supporting a 'Buy on Dips' strategy," Singhania mentioned.
On the global front, several macroeconomic indicators will
play a crucial role in influencing market trends.
US inflation data for January, which will be released on
February 12, is expected to show core inflation at 3.2 per cent and headline
inflation at 2.9 per cent year-on-year (YoY).
Any deviation from these estimates could impact the US
Federal Reserve’s future interest rate decisions.
Additionally, UK GDP data and China's inflation numbers will
also be watched closely.
In the last week, the domestic equity benchmarks continued
their upward momentum as the Nifty advanced by 0.33 per cent to close at
23,559.95, while the BSE Sensex rose 0.46 per cent to settle at 77,860.
