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Below the Quote on Market by Krishna Appala, Sr. Research Analyst, Capitalmind Research

“The week concludes on a mixed note—heavy selling at the start, a brief recovery, and now a wait-and-watch approach ahead of the budget. As of today, Nifty is down 10.7% from its peak, the Midcap 150 has declined 12.7%, and the CNX Smallcap is down 14.6%. On a weekly basis, Nifty has gained 1.08%, Midcaps are up 1.1%, while Smallcaps remain weak, down 3.3%.

The budget comes at a critical juncture, with weak consumption, a depreciating rupee, and global uncertainties dampening market sentiment. The ?11.1 lakh crore capex target for FY25 is likely to fall short by 10-12%, but a strong push on execution could still drive economic momentum. Meanwhile, the RBI’s recent liquidity interventions—injecting ?600 billion into banks while selling $5 billion—aim to stabilize the rupee and support growth. With the MPC meeting set for February 5-7, the odds of an immediate rate cut remain low, especially after the US Fed decides to hold rates steady.

With FMCG volume growth subdued and personal loan growth slowing to 12% YoY, reviving consumption is critical. Investors are looking for a growth-oriented budget free from unexpected policy shocks—because in times of uncertainty, no bad news is often the best news.”

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