Stock Market Cues This Week: Inflation, Q3 Results, FPI Flows Among Other Triggers To Guide D-Street Sentiment

The penultimate month of the current financial year so far has been a tumultuous ride for equity investors. The benchmark indices went through a topsy-turvy trajectory as market participants digested key policy announcements made during the presentation of the annual Union Budget 2026-27, and reacted to the fairly expected Reserve Bank of India's (RBI) monetary policy decisions, where the central bank maintained the repo rate at 5.25 per cent and retained a neutral policy stance. The announcement of the India-US trade deal on February 2 also brought volatility in the market during the week.

Amid this, the Sensex witnessed wild swings from February's low of 79,899.42 to the month's high so far at 85,871.73. Similarly, Nifty 50 swung from a low of 24,571.75 to 26,341.20.

At close on February 6, Sensex was at 83,580.40, up 266.47 points, or 0.32 per cent from the previous close, while Nifty 50 was at 25,693.70, up 50.90 points, or 0.20 per cent.

Stock Market Cues To Watch This Week

In the coming week, from February 9 to February 13, several cues, including the release of retail inflation data for January 2026, Q3 results, and foreign portfolio investors (FPIs) flows, could trigger action on the D-Street.

Inflation Data January 2026

The National Statistical Office (NSO) is set to release the consumer price index (CPI) inflation numbers for January 2026 on February 12. Following this, the Office of the Economic Adviser, DPIIT, is set to release the Wholesale Price Index (WPI) inflation for January on February 16, 2026.

Q3 Results This Week

As the Q3 earnings season nears its end, as many as 1714 companies listed on the BSE will release their quarterly results this week. Among the Sensex and Nifty 50 stocks, Titan, Hindustan Unilever, Coal India, ONGC, Apollo Hospitals, and Mahindra & Mahindra will report their Q3 earnings. Apart from these, IRCTC, Sun Pharma, Britannia, IRCON, Hindalco, BSE, Lenskart Solutions, and Ashok Leyland, among others.

FPI Flows

After starting the year with Rs 35,962 crore outflows, FPIs have bought domestic stocks worth Rs 8,129 crore in February so far, according to National Securities Depository Limited (NSDL) data. The FPI inflows came after the announcement of the India-US trade deal allayed some uncertainty around global trade policies and instilled a sense of confidence among foreign investors.

Further, the appreciation in rupee (INR) against the US dollar (USD) also supported FPI inflows. The INR appreciated from a record low of 92.22 to 90.59 against the USD during the last week. "INR is expected to stabilise and gradually appreciate to below 90 to the dollar by end March 2026. This has the potential to trigger more FII inflows into India," VK Vijaykumar, chief investment strategist at Geojit Investments, wrote in his weekly note.

India-US Trade Deal

Following the announcement of the India-US trade deal, an interim trade pact between the two countries was announced on February 6.

According to the announcement, the US will cut tariffs on India to 18 per cent from 50 per cent earlier, opening up a $30 trillion market for Indian exporters, especially small businesses, farmers, and fishermen. These include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products, and select machinery. In return, India will reduce or remove import duties on US industrial goods and various food products including nuts, fruits, and spirits.

Japan General Election

A landslide win for Japan’s ruling Liberal Democratic Party (LDP) in the general election on February 8 could ultimately be supportive for the yen and government bonds, analysts told Reuters.

"Analysts say an overwhelming LDP victory may in the end be positive for bonds, as it would eliminate the need for Takaichi to negotiate with opposition parties, who are touting even deeper tax cuts and broader fiscal spending. And a big buffer would give her a freer hand to respond to pressure from markets, as she has in the past, and adjust policies to head off yen weakness or higher borrowing costs," the report said.

"Immediate reactions following Sunday's election result could send the yen and bonds lower," the report added.

Any spike in Japan’s currency or bond yields could sour risk appetite and trigger foreign investors to turn cautious on Indian equities.