Stock markets ahead: Budget, RBI policy major events to watch out for

New Delhi: Stock markets are expected to remain volatile in this eventful week as the Union Budget, macro data and RBI policy would be keenly watched by investors, say analysts.

The ongoing quarterly earnings season would also be in focus directing the movement of indices.

"Going ahead, markets may continue to remain highly volatile amidst the ongoing earnings season and the Union Budget 2021. Expectations from the Budget are running high," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.

Quarterly earnings of HDFC, Adani Power, Hero MotoCorp and M&M would remain in focus this week.

The Economic Survey 2020-21 was tabled in the Lok Sabha on Friday.

The Survey projected that India's economy is likely to grow by 11 per cent in the fiscal year beginning April 1 as a vaccine drive and rebound in consumer demand help it emerge from the carnage inflicted by a strict coronavirus lockdown.

The rebound will follow an estimated 7.7 per cent contraction in the Gross Domestic Product (GDP) in the current financial year, the document said.

According to the survey, the "V-shaped recovery is supported by COVID vaccination drive."

"Now all eyes would be on the Union Budget scheduled on Monday. We believe that the Budget would focus on reviving growth and any disappointment on that front would lead to further correction in the markets," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Driving market sentiments would also be announcements of PMI data for the manufacturing and services sector this week.

Also, RBI interest rate decision on Friday is another major event that would drive domestic market sentiments.