Stock Market Next Week (Feb 2–6, 2026): Sensex, Nifty May Stay Volatile After Budget; RBI MPC, Q3 in Focus

The Indian stock market is expected to remain volatile in the week ahead from February 2 to 6, 2026 as investors digest the sharp reaction to Union Budget 2026, monitor the RBI Monetary Policy Committee (MPC) meeting, track a busy corporate earnings calendar and assess global cues.

Stock Market Next Week From 2 to 6 February 2026: Sensex, Nifty Weekly Prediction

Markets witnessed a steep intraday sell-off during the special Budget session on February 1, following Finance Minister Nirmala Sitharaman's ninth consecutive Budget presentation. The Sensex plunged over 2,800 points from its intraday high, while the Nifty 50 slipped to 24,571.75, as traders reacted negatively to the increase in Securities Transaction Tax (STT) on derivatives.

Analysts noted that while the Budget attempted to balance growth support with fiscal discipline, the STT hike in the futures and options (F&O) segment came as a surprise, sharply increasing transaction costs and triggering heavy selling pressure in the afternoon session.

"Markets may witness intermittent volatility and softer liquidity in F&O-heavy stocks. However, from a structural perspective, this move could encourage a healthier shift towards cash market participation and longer-term investing," Pranay Aggarwal, Director and CEO of Stoxkart, said the STT hike could lead to near-term volatility.

Aggarwal added that the decision to allow Persons Resident Outside India (PROI) to invest directly in listed Indian equities under the Portfolio Investment Scheme is a significant reform.

"This is expected to broaden the investor base, enhance market depth, and attract stable long-term foreign capital flows... while the STT hike may create short-term friction, the inclusion of NRIs strengthens the long-term attractiveness of Indian stock markets," he added.

Key Factors To Drive Market Sentiment Next Week

RBI MPC Meeting From 4 to 6 February, 2026

The next key trigger for the markets is the RBI Monetary Policy Committee meeting scheduled from February 4 to February 6, 2026. Most experts expect the central bank to keep policy rates unchanged, following cumulative rate cuts of 125 basis points since February 2025, which brought the repo rate down to 5.25%.

Any commentary from the RBI on inflation, liquidity, or growth will be closely watched for cues on the future policy trajectory.

Q3 Results This Week

Markets will also track a packed corporate earnings calendar, as several heavyweight companies are set to announce their Q3 FY26 results. Key names include Adani Enterprises, Bharti Airtel, LIC, RVNL and State Bank of India.

Commodity Market Reaction: MCX Gold & Silver Down

Meanwhile, commodity markets saw sharp declines in gold and silver prices on the MCX during the Budget session, adding to risk-off sentiment. Investors will assess whether the fall reflects broader liquidity concerns.

FII Outflows

Foreign investor activity remains cautious, with foreign portfolio investors (FPIs) turning net sellers on January 29, offloading equities worth Rs 394 crore, while domestic institutional investors (DIIs) provided support by buying shares worth Rs 2,634 crore.

"Key data points to watch next week include auto monthly sales numbers, January GST collections and trends in metal prices. Overall, markets are expected to remain focused on Budget-related announcements and global cues," said Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services.

Nifty Weekly Prediction (2-6 February, 2026): Nifty 50 Next Week Likely To Consolidate

The index formed a small bullish candle contained within the previous session's range, signalling consolidation amid stock-specific action. Bajaj Broking Research expects the Nifty 50 to remain range-bound in the near term due to the Budget, RBI policy outcome and global developments.

"Nifty is likely to consolidate in the 25,000-25,500 range. A move above 25,500 could open upside towards 25,700-25,800, while key support is placed at 24,900-25,000. A breach below this zone could drag the index towards 24,600," noted Bajaj Broking Research.

Bank Nifty Outlook: Range-Bound with Volatility

For Bank Nifty, Bajaj Broking noted signs of consolidation. "The index formed a small-bodied candle with a long upper shadow, indicating consolidation amid stock-specific action."

Bank Nifty is expected to trade in the 58,500-60,400 range in the coming sessions. "A decisive breakout above 60,400 may lead to further upside towards 61,500, while immediate support is seen near 59,000-58,800. The key support zone lies at 58,000-57,500," said the brokerage firm.

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