RBI policy review meet on Tuesday and the next batch of quarterly earnings from blue-chips like Bajaj Auto and Tata Steel would set the tone for the stock market this week, say experts.
"All eyes will be on the outcome of RBI's policy review; macroeconomic data, next batch of December quarter corporate earnings, sentiments in global markets, movement of rupee against the dollar and crude oil price will dictate the trend," said Vijay Singhania, Founder-Director, Trade Smart Online.
The count-down to the Union Budget 2016-17 has begun with investors now building up expectations across sectors.
"We will see a lot of action in mid-cap stocks in anticipation of expectation from the forthcoming Budget," he added.
Also, the announcement of Purchasing Managers' Index (PMI) data for services and manufacturing sector due this week would influence trading.
"The focus, going ahead will be on the remaining quarterly numbers and then the budget," said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities.
Shares of auto companies would be in focus amid monthly sales data announcement from Monday.
"RBI monetary policy on Tuesday, macroeconomic data, trend in global markets, investment by foreign investors, movement of rupee, crude oil prices, auto sales numbers and third quarter results of companies like Tech Mahindra, DLF, Indian Oil, Tata Steel, Lupin, will dictate trend of the market in near term," said Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.
For the week gone by, the BSE 30-shares key index Sensex rose by 435 points or 1.78 per cent to 24,870.69.