Week Ahead: Delhi Election Results, Q3 Earnings, Inflation Data Among Key Triggers for Indian Stock Market
The Indian stock market wrapped up another volatile week, ultimately ending with marginal gains amid mixed domestic and global factors. Market participants closely watched the impact of Budget 2025 announcements, the Reserve Bank of India (RBI)’s monetary policy decision, the Delhi elections, and US trade tariff developments.
Looking ahead, the second week of February 2025 is packed with crucial events that could influence market sentiment. Key factors to watch include the Delhi Election Results 2025, Q3 corporate earnings, retail inflation data, foreign fund flows, and global economic cues.
Market Recap: Nifty & Sensex Extend Gains
For the second consecutive week, domestic equity benchmarks remained in positive territory. The Nifty 50 gained 0.33%, closing at 23,559.95, while the BSE Sensex rose 0.46%, settling at 77,860.
One of the major developments last week was the RBI’s decision to cut the repo rate by 25 basis points to 6.25%, marking its first rate cut since May 2020. However, this move failed to generate a significant rally, as investors were expecting more aggressive liquidity-boosting measures.
Despite this, markets received some support from the positive outlook following the Union Budget 2025 and US President Donald Trump’s temporary suspension of import tariffs on Canada and Mexico.
Key Triggers for the Market This Week
1. Delhi Election Results 2025
The Bharatiya Janata Party (BJP) secured 48 out of 70 seats in the Delhi Assembly, comfortably forming the government in the Union Territory. The market generally perceives political stability as a positive factor, and analysts believe this election outcome could further boost investor confidence.
“This is likely to impact the market positively in the short run. However, long-term trends will depend on GDP growth and corporate earnings,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2. Q3 Corporate Earnings to Drive Sentiment
As earnings season continues, key companies set to report their Q3 FY25 results this week include:
- TVS Supply Chain Solutions
- Varun Beverages
- CRISIL
- Eicher Motors
- Apollo Hospitals
- Grasim Industries
- Vodafone Idea
- Steel Authority of India
- Bayer CropScience
- Hindustan Aeronautics
- IIFL Finance
- Muthoot Finance
Investors will keenly watch these results for sector-specific trends, margin pressures, and management commentary on demand recovery.
3. Inflation and Industrial Output Data
Key macroeconomic indicators scheduled for release include:
| Economic Indicator | Previous Value | Expected Value |
|---|---|---|
| CPI Inflation (YoY) | 5.22% | 4.69% |
| WPI Inflation (YoY) | 0.73% | 1.1% |
| Industrial Production (YoY) | 5.2% | 4.1% |
Inflation data, set for release on February 12, will be crucial as it may influence RBI’s future policy stance. A cooling inflation rate could strengthen the case for further rate cuts in upcoming policy meetings.
4. IPOs & Market Listings: Primary Market Action
This week will see a flurry of IPO activity, with three new mainboard IPOs opening for subscription:
- Ajax Engineering IPO
- Hexaware Technologies IPO
- Quality Power IPO
Additionally, six SME IPOs will hit the market, and six newly listed SMEs will debut on the stock exchanges.
5. FII & DII Activity: Institutional Flow Trends
Last week, foreign institutional investors (FIIs) continued their selling spree, offloading stocks worth ₹8,852 crore in the cash segment. However, domestic institutional investors (DIIs) provided some cushion, buying shares worth ₹6,449 crore.
“The strength in the dollar index and high US bond yields are keeping FIIs cautious. However, signs of softening US bond yields may lead to reduced FII selling in the coming days,” said Dr. V K Vijayakumar.
6. Global Cues: Key Economic Data from the US, UK, and China
Global markets will keep an eye on several important economic releases:
| Global Data | Release Date | Forecast |
|---|---|---|
| US CPI (Jan) | Feb 12 | 2.9% YoY |
| US Core CPI (Jan) | Feb 12 | 3.2% YoY |
| UK GDP (Dec) | Feb 13 | 0.1% MoM |
| US Retail Sales (Jan) | Feb 14 | 0.4% MoM |
| China CPI (MoM) | Feb 14 | 0.2% |
The US Federal Reserve’s stance on interest rates will be closely monitored, as inflation data and retail sales figures could shape expectations around future rate cuts.
Market Outlook: Will Bulls Maintain Control?
Given the Delhi election results, upcoming Q3 earnings, and macroeconomic data releases, Indian equities are likely to witness heightened volatility this week.
Rate-sensitive sectors like banking, financials, and auto may remain in focus after the RBI’s rate cut. Meanwhile, IT, pharma, and metal stocks could see further buying interest amid improving global trade sentiment.
“The overall market trend remains positive in the short term, but long-term sustainability depends on corporate earnings recovery and GDP growth,” said Ajit Mishra, SVP Research at Religare Broking Ltd.
Conclusion
The Indian stock market enters another crucial week, with multiple domestic and global triggers influencing investor sentiment. The Delhi election results and Q3 earnings season will be the most critical factors, while macroeconomic data—both domestic and international—will shape broader trends.
Investors should stay cautious and focus on quality stocks, corporate earnings trends, and global market signals while navigating the volatility ahead.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.