Indian stock markets enter the week of February 3–8, 2026 with cautious optimism. Key triggers include upcoming inflation data, Q3 corporate earnings, global cues, RBI policy expectations, and foreign investor flows. These factors will dictate movements in Sensex and Nifty, as investors weigh domestic fundamentals against international volatility.
Key Highlights
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Inflation Data Release: Investors are closely watching India’s latest consumer price inflation numbers, expected this week. Any surprise uptick could dampen sentiment, while softer inflation may boost hopes of monetary easing.
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Q3 Corporate Earnings: Heavyweights like ITC, Kotak Mahindra Bank, and ICICI Bank have already shown resilience, lifting indices last Friday. More Q3 results across sectors will provide clarity on corporate health and profitability.
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Global Market Cues: US and European indices closed higher last week, while Asian markets showed improved risk appetite. However, volatility in commodities and geopolitical tensions (including US-Iran concerns) remain potential headwinds.
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RBI Policy Anticipation: With inflation data due, investors are speculating on the Reserve Bank of India’s monetary stance. Any hint of rate adjustments could significantly influence banking and financial stocks.
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Foreign Investor Flows: The preliminary US–India trade deal has boosted optimism, with expectations of stronger FII inflows. Sustained foreign participation will be crucial for maintaining upward momentum in Indian equities.
Market Snapshot
On Friday, February 6, the Sensex rose 266 points (0.32%) to 83,580.40, while the Nifty 50 gained 51 points (0.20%) to 25,693.70. Buying interest in select heavyweight stocks supported the rally.
Why It Matters
This week is pivotal for the Indian stock market as domestic data meets global dynamics. Inflation figures will set the tone for monetary policy, while Q3 earnings will reveal sectoral strength. Combined with foreign investor sentiment and geopolitical cues, these triggers will dictate whether markets sustain their upward trajectory or face corrections.
Sources: LiveMint, MSN, Daily Financial, Kartalks