For equity investors, the Union Budget for 2023-24 and the US Fed's interest rate decision will be the major events to watch out for this week, analysts said.
The ongoing earnings season, global market cues, domestic macroeconomic data announcements and auto sales numbers would also influence trading in the market, they added.
"The Union Budget is a key domestic event on February 1st, and the outcome of the US Federal Open Market Committee (FOMC) meeting scheduled for the same day late at night is a key global event. A bunch of companies will come out with Q3 earnings this week, while monthly auto sales numbers and macroeconomic numbers from the USA will be other important factors.
"The market will continue to monitor the Adani Group. FIIs' flow will be important," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Adani group stocks fell sharply last week after US-based investment research firm Hindenburg Research made damaging allegations against the conglomerate.
From the macroeconomic front, the Purchasing Managers' Index (PMI) data for manufacturing and services sectors are due to be announced on Wednesday and Friday, respectively.
"With the Union Budget scheduled to be unveiled on February 1st, the week will be jam-packed with activity. The ongoing quarterly earnings will also have an impact on how each stock moves. The FOMC meeting will catch market players' eyes on a global scale," said Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities.
Market trends will also be guided by trading activity of foreign investors who have pulled out a net Rs 17,000 crore this month so far.
"This week is going to be critical not only for the financial markets but for the economy as well due to the scheduled Union Budget on February 1. Besides, participants will be eyeing the outcome of the US Fed meet on the same day.
"On the data front, auto numbers, manufacturing PMI and services PMI will also be in focus. As the earnings season gain pace, a lot of major names like Larsen & Toubro, ACC, Sun Pharma, HDFC, ITC and SBI will report their numbers during the week," said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.
Last week, the BSE barometer Sensex had tumbled 1,290.87 points or 2.12 per cent.