Key Trends to Watch in Feb 2026: Union Budget 2026, RBI MPC, Auto Sales, and More

In January 2026, Indian equity markets experienced significant volatility and a mixed performance trend. The year began on a strong note with the Nifty 50 and Sensex reaching fresh record highs in early January, lifted by broad-based buying across sectors and optimism around corporate earnings and economic data. 

However, this early rally gave way to a pronounced correction mid-month, as foreign institutional investors continued to sell, global uncertainties (including tariff concerns and geopolitical risks) weighed on sentiment, and technical pressures emerged, pushing benchmarks lower, and market breadth weakened. 

In this article, we will be looking at key trends to watch in February 2026 as the Indian stock markets are highly influenced by the financial events.

Key Trend to Watch in February 2026

Union Budget 2026

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026–27 on Sunday, February 1, 2026. This will mark her ninth Budget presentation, underscoring its importance in India’s economic and political landscape, with potential implications for the Indian stock market.

January 2026 Auto Sales Data

Auto stocks such as Tata Motors, Maruti Suzuki (MSIL), and Hyundai are expected to remain in focus as investors await the release of January auto sales figures. The January 2026 sales data is likely to be announced by automobile companies on February 1 or February 2, 2026.

RBI Monetary Policy Committee Meeting

According to the RBI’s FY26 calendar, this will be the 6th Monetary Policy Committee (MPC) meeting of the year. The three-day meeting is scheduled to begin on February 4, 2026, and conclude on February 6, 2026, with the RBI set to announce its decision on the repo rate and other key policy rates on the final day.

India Inflation Data – Key Macroeconomic Cue

In December 2025, headline consumer price inflation stood at around 1.33%, well below the Reserve Bank of India’s target range. India is scheduled to release its inflation data for January 2026 on February 12, 2026. Meanwhile, inflation figures from the US will also be closely watched, as they can influence global risk sentiment, foreign institutional investor (FII) flows, and movements in currency markets.

Also Read: Union Budget 2026: Traditions, Timings and Interesting Facts You Should Know

Conclusion

As February 2026 gets underway, investors should prepare for a data-intensive month that could have a meaningful impact on market direction. With the Union Budget 2026, the RBI’s monetary policy decision, auto sales figures, and both domestic and global inflation data lined up, markets may experience heightened volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.