Budget expectations, Q3 results to drive markets this week

The stock market this week will be guided by quarterly earnings from blue-chip firms and investor expectations from the forthcoming Union Budget, says experts.

Besides, the December wholesale inflation data, to be released on Monday, will also have its impact on the market sentiment.

"Expectation from the forthcoming Union Budget, Q3 FY17 earnings and forthcoming public issue of BSE will drive the markets this week," said Vijay Singhania, Founder-Director, Trade Smart Online.

Asia's oldest bourse BSE will launch its much-awaited Rs 1,500 crore initial public offering (IPO) on January 23.

Analysts said that Q3 FY17 earnings from blue-chip companies are set to be the next big trigger for the markets.

Among major earnings this week, Reliance Industries, Axis Bank and Adani Power would announce quarterly results.

On macro front, inflation data-based on wholesale price index (WPI) for December 2016 is scheduled to be announced on Monday.

"Additionally, global market will be watchful as Trump will take oath and assume office. His economic agenda will be the key factor to influence the market," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd.

Over the past week, both key indices Sensex and Nifty recorded a rise of 478.83 points, or 1.78%, and 156.55 points, or 1.89%, respectively.