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Budget 2026, Fed Meeting, Earnings to Drive Volatile Stock Market Next Week

The Indian stock market is poised for a volatile week ahead, driven by major events including the Union Budget 2026 and the US Federal Reserve's policy meeting. Corporate earnings for the third quarter of FY26 will also remain a key focus for investors. Global developments, particularly regarding India-US trade discussions and record-high precious metal prices, add further layers of uncertainty. The benchmarks ended the previous week sharply lower due to profit booking and foreign investor selling.

Key Points: Stock Market Outlook: Budget 2026, Fed Meeting, Earnings Impact

  • Union Budget 2026 presentation
  • US Federal Reserve policy meeting
  • Ongoing Q3 FY26 earnings season
  • Global cues & India-US trade talks
  • Precious metals at record highs
2 min read

Union Budget, Fed meeting and earnings likely to drive stock market next week

Indian stock market faces volatility from Union Budget 2026, US Fed policy, corporate earnings, and global cues. Key levels and triggers analyzed.

"A breakdown below 24,350 could intensify downside pressure and accelerate corrective moves - Analyst"

Mumbai, Jan 25

The Indian stock market is expected to remain volatile in the coming week as investors keep a close eye on several major events, including the Union Budget 2026, the US Federal Reserve meeting, ongoing corporate earnings, and global developments.

After a choppy week marked by selling pressure and global worries, market participants are likely to trade cautiously while looking for clear signals from these key triggers.

The domestic equity market ended the week on a weak note after slipping sharply on Friday. Profit booking, continued foreign investor selling, and uncertainty over geopolitical issues pulled the benchmarks lower.

The Sensex dropped 770 points, or 0.94 percent, to close at 81,537.70, while the Nifty fell 241 points, or 0.95 percent, to end at 25,048.65.

"Immediate resistance is placed at 25,300, followed by 25,400 and 25,600 levels," an analyst said.

"On the downside, support is seen at 24,880 and 24,587. A breakdown below 24,350 could intensify downside pressure and accelerate corrective moves," the analyst stated.

One of the biggest drivers next week will be the Union Budget 2026, which Finance Minister Nirmala Sitharaman will present in Parliament on Sunday, (February 1).

Investors will watch closely for announcements related to taxes, government spending, infrastructure projects, and measures to boost economic growth.

The budget's tone and priorities could decide the short-term direction of the stock market.

Global markets will also be influenced by the US Federal Reserve's policy meeting scheduled from January 27 to January 28.

Experts believe the central bank is likely to keep interest rates unchanged. However, comments from Fed officials about future rate plans could impact global investor sentiment and capital flows.

The earnings season will continue to remain in focus as several major companies are set to announce their third-quarter results for FY26.

Developments related to a potential India-US trade deal will also be closely monitored. Union Minister Ashwini Vaishnaw recently said India is actively involved in global trade discussions, expressing confidence after US President Donald Trump spoke positively about reaching an agreement between the two countries.

Meanwhile, rising gold and silver prices are adding another layer of attention. Gold surged close to the $5,000 per ounce mark, hitting a new high above $4,967, driven by geopolitical tensions and a weaker US dollar.

Silver also touched an all-time high near $100 an ounce. The softer dollar has made precious metals cheaper for buyers worldwide, boosting demand.

- IANS

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Reader Comments

R
Rohit P
The Fed meeting is what makes me nervous. Our market dances to their tune too much. Even if they hold rates, just a hint of hawkishness and FIIs will pull out more money. We need domestic institutions to step up big time.
A
Aditya G
Gold at $5000 and silver at $100! This is insane. My father always said to keep some gold, and now I see why. With this volatility in equity, having 10-15% in physical gold feels like a safe harbour. Traditional wisdom wins.
S
Sarah B
The focus should be on infrastructure spending in the budget. If the government commits to big projects, it will boost employment and have a multiplier effect on the economy. That's more important than short-term market moves.
K
Karthik V
Earnings season is the real test. Budget and Fed are external events, but company profits are fundamental. If results are strong, the market will find a floor. Watching IT and banking results closely next week.
M
Meera T
While the budget is important, I hope the government also addresses rural distress and farmer incomes. A balanced economy is crucial for sustainable market growth. A stock market boom alone doesn't reflect the health of the entire nation.
V
Vikram M
The India

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