Indian share market is set to start the week on a bearish note, tracking weak cues from Asian peers, which crashed up to 4% amid trade war fears after new US tariffs on goods from Canada, Mexico and China. The weak trend at Gift Nifty also indicates a negative start for Sensex and Nifty, with Nifty futures trading 166.5 points, or 0.71%, lower at 23,382 mark.

Following Budget 2025, investors will shift focus to the RBI and Bank of England’s monetary policies scheduled this week, while policies from U.S. President Donald Trump administration will set tone for the market. The flows of foreign funds, rupee movement, macroeconomic data, and trends in crude oil prices will also impact market. The market is also expected to see stock specific reactions as some companies, including Hero MotoCorp, Eicher Motors, GR Infraprojects, Neogen Chemicals, released their earnings report post market hours on Saturday. Meanwhile, Power Grid Corporation of India, Tata Chemicals, Aditya Birla Capital, Divis Laboratories, Alembic Pharmaceuticals, are set to release their Q3 results today.

U.S. stocks ends lower on Friday on Trump’s tariff plan

On Friday, Wall Street closed lower in volatile trade after the White House confirmed that tariffs on Mexico and Canada would take effect from February 1. President Donald Trump’s administration is set to impose 25% tariffs on Canadian and Mexican imports, while he has also warned BRICS countries that they will face 100% tariffs if they replace the U.S. dollar with their other currency. At the close, the Dow Jones Industrial Average was down 0.75%, the S&P 500 dropped 0.5%, and the Nasdaq Composite lost 0.3%.

Asian markets fall up to 4% amid trade war concerns

Markets in Asia-Pacific region started the week on a negative note, tracking weak cues from Wall Street, amid looming concerns about trade war. The Asian stock dropped up to 4% after the U.S. government proposed tariffs on Canada, Mexico and China. Japan’s Nikkei 225 plunged over 2.5%, South Korea’s KOSPI tumbled 2.9%, while Australia’s ASX 200 ended 1.65% lower. Hong Kong’s Hang Sang dropped 1.5% and Taiwan’s Weighted stock index crashed 3.7% after they opened after Lunar New Year holidays.

Domestic market ends flat on Budget day

Indian equities closed lower with marginal gains on Saturday amidst volatility after the Finance Minister Nirmala Sitharaman presented the Union Budget 2025-2026 in the Parliament. In the special trading session conducted on February 1, 2025, the 30-share Sensex closed 5.39 points, or 0.01%, higher at 77,505.96, while the Nifty 50 settled 26.25 points, or 0.11%, lower at 23,482.15. The broader market ended mixed, with Nifty Smallcap 100 rising 0.41%, while the Nifty Midcap 100 dropped 0.42%. Among sectoral indices, FMCG, realty, and auto were gained the most amid hopes that income tax relief to middle class will drive consumption, while PSU Bank, Metals, Pharma, and oil & gas were among top laggards.

Stocks to watch

Q3 results today

Power Grid Corporation of India, Tata Chemicals, DOMS Industries, Aditya Birla Capital, Divis Laboratories, Alembic Pharmaceuticals, Barbeque-Nation Hospitality, Bombay Dyeing, Castrol India, Dredging Corporation of India, Gateway Distriparks, General Insurance Corporation of India, Gland Pharma, Garden Reach Shipbuilders & Engineers, HFCL, Jyoti Structures, KEC International, KPR Mill, NLC India, Paradeep Phosphates, Poly Medicure, Premier Energies, Shalby, Shankara Building Products, Stove Kraft, Vishnu Prakash R Punglia, and Welspun Enterprises will release their quarterly earnings on February 3.

Lupin: The U.S. FDA has completed a pre-approval inspection (PAI) of Edaravone oral suspension at the company’s Somerset, New Jersey manufacturing facility.

Indian Bank: The PSU lender has increased the marginal cost of funds-based lending rate (MCLR) by 5 bps in the 1-month, 3-month, 6-month, and 1-year tenures, effective February 3.

Coal India: The PSU major reported 0.8% drop in coal production at 77.8 million tonnes in January, compared to 78.4 million tonnes in the same month last year. Offtake increased by 2.2% to 68.6 million tonnes, compared to 67.1 million tonnes in the same period.

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