Equity market sentiment this week will be guided by global trends in the absence of any major domestic triggers, while bourses may also see some volatility amid expiry of derivatives contracts, analysts said.
Fears of sooner-than-expected tapering in monetary stimulus by the US Federal Reserve, rising cases of the Delta variant of the coronavirus coupled with China's regulatory crackdown, triggered selling in global markets in the previous week.
"In the absence of key domestic economic data points, the market is expected to continue its focus on global events in order to gain momentum. Global rise in COVID cases is also a cause for worry, keeping the volatility high," said Vinod Nair, head of research at Geojit Financial Services.
During the last holiday-shortened week, the 30-share BSE benchmark Sensex declined 107.97 points or 0.19 per cent.
"Going ahead, global cues will be closely watched for further market direction. With cases of Delta variant rising globally, this is becoming the biggest worry for the markets at the moment along with nervousness around US Fed taper talks," said Siddhartha Khemka, head, retail research, broking and distribution, Motilal Oswal Financial Services Ltd.
With the earnings season over, markets would track movement in rupee, Brent crude and foreign fund inflows to derive further cues, analysts added.