Indian equities start the first full week of February on mixed footing after a volatile final week in January. The benchmark indices swung sharply; the Sensex settled 296 points lower and the Nifty slipped below 25,350, pressured by profit-taking and a record-weak rupee near a three-year low as foreign outflows persisted.

The India–EU free trade agreement, a landmark pact encompassing nearly one-third of global trade, marks a meaningful step toward deepening India’s integration into global value chains, potentially improving export competitiveness and supporting medium-term earnings visibility across key sectors.

Further, the Economic Survey projected India’s FY27 GDP to expand 6.8–7.2%, reinforcing long-term growth narratives.

With the Union Budget now imminent, investors should monitor policy cues, crude price volatility and FII activity, favouring quality large-caps and export-linked sectors while navigating short-term risk-off phases.

In India, the India Union Budget for 2026-27 would be announced on Sunday (01 February 2026).

On Monday (02 February 2026), the HSBC Manufacturing PMI Final for January 2026 would be released. The HSBC India Manufacturing PMI rose to 56.8 in January 2026 from 55.0 in December, marking the strongest improvement in operating conditions in three months, according to preliminary estimates.

On Wednesday (04 February 2026), the HSBC Services PMI Final and the HSBC Composite PMI Final for the month of January would be released.

The HSBC India Services PMI increased to 59.3 in January 2026 from a final reading of 58.0 in December 2025, which marked the softest expansion in 11 months.

The HSBC India Composite PMI rose to 59.5 in January 2026 from December’s 11-month low of 57.8, flash data showed. The reading was well above the long-run average, driven by stronger growth in both manufacturing and services.

On Friday (06 February 2026), the RBI would be announce its interest rate decision through the release of the latest monetary policy. The Reserve Bank of India (RBI) lowered its key repo rate by 25 basis points to 5.25% during its December 2025 meeting, amid confidence in a softer inflation outlook. The RBI has now cut rates by a total of 125 basis points since the beginning of the year, bringing the repo rate to its lowest level since July 2022.

In China, the NBS Manufacturing PMI and the NBS Non-Manufacturing PMI for the month of January would be released on Saturday (31 January 2026). China’s official NBS Manufacturing PMI unexpectedly rose to 50.1 in December 2025, surpassing both November’s reading of 49.2.

The official NBS Non-Manufacturing PMI for China rose to 50.2 in December 2025 from 49.5 in the prior month, marking the highest level since August.

On Monday (02 February 2026), the RatingDog Manufacturing PMI for January 2026 would be released. The RatingDog China General Manufacturing PMI unexpectedly increased to 50.1 in December 2025 from November’s four-month low of 49.9.

On Wednesday (04 February 2026), the RatingDog Services PMI for January 2026 would be announced. The RatingDog China General Services PMI edged down to 52.0 in December 2025 from 52.1 in November.

In the United States, the ISM Manufacturing PMI for January 2026 would be announced on Monday (02 February 2026). The ISM Manufacturing PMI for the US fell for a third consecutive month to 47.9 in December 2025, the lowest level since October 2024, compared to 48.2 in November.

Tuesday (03 February 2026) would see the release of the JOLTs Job Openings data for December 2025. Job openings in the US fell by 303,000 to 7.146 million in November 2025, the lowest since September 2024.

On Wednesday (04 February 2026), the ISM Services PMI for the month of January would be made public. The ISM Services PMI for the US increased for a third consecutive month to 54.4 in December 2025 from 52.6 in November,

The figures pertaining to the changes in the API Crude Oil Stock for the period ended on January 30 would also be released on the same day. US crude oil inventories fell by 0.25 million barrels in the week ended January 23rd, 2025, reversing a 3.04 million-barrel build in the prior week.

The Initial Jobless Claims data for the period ending on January 31 would be made public on Thursday (05 February 2026). Initial jobless claims in the US inched lower by 1,000 to 209,000 from the upwardly revised value in the previous week.

Lastly, on Friday (06 February 2026), the Non-Farm Payrolls data for January 2026 would be released. The US economy added 50K payrolls in December 2025, less than a downwardly revised 56K in November.

The Unemployment Rate for the month of January would be also be announced on the same day. The US unemployment rate edged down to 4.4% in December 2025, from a revised 4.5% in November, which had marked the highest level since October 2021.

Friday would also see the release of the preliminary reading for the Michigan Consumer Sentiment for February 2026. The University of Michigan’s consumer sentiment index was revised up to 56.4 in January 2026, from a preliminary 54.0 and December’s 52.9.