Macroeconomic data announcements, global factors and trading activity of foreign investors would be the key triggers for the domestic stock markets this week, analysts said.
Last week, the benchmark indices joined the broader market's party despite a host of negative global cues. In the broader market, the BSE midcap and smallcap gauges hit their all-time highs on Friday.
"Despite last week's market rally, institutional investors remained net sellers throughout the week, making it crucial to monitor institutional flows going forward. On the global front, close attention will be paid to movement in crude oil prices, the dollar index, and US bond yields," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Global factors such as the US inflation and the outcome of the ECB meeting will be of significance, Meena said adding that our IIP and CPI numbers are scheduled to be announced on September 12.
From the domestic macroeconomic front, industrial production data for July and inflation data for August will be announced on Tuesday.
"On the macro front, the market will react to some of the key domestic events such as India's CPI and WPI inflation, IIP numbers, manufacturing output. Major global events that can impact the market are US inflation, initial jobless claims, industrial production, crude oil inventories, UK GDP and IIP numbers would be in focus," Arvinder Singh Nanda, senior vice president, Master Capital Services Ltd, said.
Vinod Nair, Head of Research at Geojit Financial Services, said currently, the market is eagerly awaiting data on inflation and industrial production to provide further guidance.
Last week, the BSE benchmark jumped 878.4 points or 1.34 per cent and the Nifty climbed 384.65 points or 1.97 per cent.
Domestic indices experienced a gradual rally throughout the week, buoyed by strong domestic macroeconomic data such as robust GDP and PMI figures, which painted a positive outlook for the domestic market, Nair said.
"Despite a mixed global trend marked by weak cues, Indian equities remained resilient, supported by this strong economic outlook," Nair added.
Markets extended rally for the sixth straight session despite weak global cues, as investors remained optimistic about India's strong growth prospects going ahead, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.