Key factors that will drive the markets this week

Geopolitical developments and their impact on commodity markets will also be closely watched.

Illustration: Dominic Xavier/Rediff

Inflation data, trading activity of foreign investors and global trends would dictate sentiment in the stock market this week, according to analysts.

Besides, geopolitical developments and Q3 earnings will also guide market movement during the week.

“This week features several important domestic and global triggers.

What investors in India will track

“In India, investors will closely track retail inflation data due on February 12 and foreign exchange reserves data on February 13, for insights into price trends and external sector stability.

“The earnings calendar stays active, with key results expected from Titan Company and Mahindra & Mahindra, which may drive stock-specific action.

“Globally, participants will monitor a heavy US data calendar and performance of the Nasdaq Composite following its recent decline,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

Geopolitical developments and their impact on commodity markets will also be closely watched, Mishra added.

Which companies will announce results this week?

From the Q3 earnings space, Ashok Leyland, ONGC, Bajaj Electricals and Eicher Motors will also be announcing their results during the week.

India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.

While the US will reduce tariffs on Indian goods to 18 per cent from the present 50 per cent, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits.

“With the Union Budget 2026 and the RBI’s monetary policy decisions now largely digested, Indian equity markets have entered a consolidation phase, shifting investor focus toward implementation, capex execution and the pace of actual spending.

Overall sentiment remains cautiously optimistic

“Overall sentiment remains cautiously optimistic, with markets expected to stay event-driven in the near term, tracking global cues, capital flows and geopolitical developments in the Middle-East,” Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said.

Last week, the BSE benchmark jumped 2,857.46 points, or 3.53 per cent, and the Nifty surged 868.25 points, or 3.49 per cent.