Third-quarter earnings of blue chip companies like TCS and Infosys, as well as key macroeconomic data of IIP and inflation will dictate market trend this week, say experts.
Other factors that are likely to influence market sentiments in the near term include global market trends, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and crude oil prices.
On the earnings front, markets will be eyeing the results of big names like TCS, Infosys, Hindustan Unilever, Zee Entertainment and IndusInd Bank, among others.
Participants would also be tracking IIP data for November and consumer price index and wholesale price index data for December.
"In the coming week, we have a lot action as government will release key macroeconomic data which will built the market sentiments.
"Apart from this, Q3-FY16 corporate earnings and sentiments in the global markets and movement of rupee against the dollar and global crude oil price movement will dictate trend next week," said Vijay Singhania, Founder-Director of discount brokerage firm Trade Smart Online.
According to domestic brokerage firm Reliance Securities, the short-term trend is likely to be dictated more by "global developments as compared to the India Inc's earnings' scorecard, where no significant improvement is expected."
Advising traders to be cautious, Reliance Securities said that investors should focus on quality companies' stocks as these counters accumulated during such challenging times tend to yield great returns over the medium-to-long-term.
The benchmark BSE Sensex tumbled by 1,226.57 points or 4.68 per cent on a weekly basis amid concerns over the Chinese economy and geopolitical tensions between Saudi Arabia and Iran.