With July-September quarter results season now almost over, the focus is seen shifting to the forthcoming session of Parliament. Key economic agenda for the session includes amendment to Insurance Bill to raise FDI cap from 26 to 49 per cent, Banking Regulation Amendment Bill and Direct Taxes Code.
"Investors' shall be looking for global cues and other post-reforms actions within the country for further market
direction," Rakesh Goyal, Senior Vice President, Bonanza Portfolio said.
With major events including RBI monetary policy and US Presidential polls now over, the Indian stock market seems direction less with a downward bias, he added.
Stock markets may open flattish to weak on Monday, say analysts. "The outlook for the market looks weak as NSE benchmark Nifty broke a big support level of 5,600 on Friday," CNI Research CMD Kishor Ostwal said.
The week is packed with global data including existing US home sales (November 19), Fed Chairman Ben Bernanke speech and Bank of Japan monetary policy (both on November 20) and manufacturing PMI in key EU nations (November 22).
Besides these, experts said that the action on reform initiatives front will be critical to revive stock markets
that have been sluggish over the past one month-and-a-half.
The BSE benchmark index Sensex had gained about 2 per cent from September 14-28, when the government announced a slew of big-bang economic reforms.
"The government seems committed to fiscal reforms and more announcements / action on these will be needed to sustain markets at current levels and help them move higher," said Dipen Shah, Head of PCG Research, Kotak Securities.
On the global front, developments regarding the US 'fiscal cliff' could also weigh on sentiment, brokers said.
With the 2G auction realising far lesser amount than expected, concerns on the fiscal deficit front have deepened. While October inflation rate did come in better than expected at about 7.45 per cent, RBI has indicated that it still remains at elevated levels.
Besides local factors, fresh worries over the economies of Eurozone and the US had dragged down the Sensex and the Nifty by around 2 per cent last week.
Figures released by the European Union's official statistics agency on Thursday had showed the combined GDP of the 17 countries that share the euro fell for the second straight quarter.