The stock markets are also likely to react to IIP and retail inflation data announced after market hours on Friday. A robust performance by the manufacturing sector took the industrial production growth to 17-month high of 8.4 per cent in November, but retail inflation at 17-month high of 5.2 per cent in December dampened the euphoria.
"Equity markets had positive ending with indices closing at all-time high levels. Results season has kicked in with large caps like TCS results in line with expectation. Infosys reported better results.
"Market enthusiasm continues. However, rising crude prices and higher yield are concerns as of now," said Anita Gandhi, Whole Time Director, Arihant Capital Markets. During the past week, the Sensex gained 438.54 points, or 1.28 per cent, while the Nifty rose 122.40 points, or 1.15 per cent.
"Inflation numbers of Monday will be eyed. Results season will be in flow with some heavyweights like Hindustan Unilever, Yes Bank, ITC and Kotak Mahindra will be coming out with earnings and of course, the after-effects of Infosys will further give some momentum," said Mustafa Nadeem, CEO, Epic Research.
"Market will be keenly watching important policy announcements that the budget will deliver which will really decide the direction of the market in the near term," said Jimeet Modi, Founder and CEO.
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