Continued strong foreign flows could lead the Sensex and Nifty to re-touch record highs, although caution is likely to set in in the lead-up to the Reserve Bank of India policy review on April 1.
The expiry of monthly derivative contracts on March 27 could also keep trading volatile.
Global factors are also becoming a factor after markets were jolted by expectations of earlier-than-expected hikes in US interest rates after a media briefing by Fed Chair Janet Yellen this week.
Still, continued foreign buying could help underpin sentiment.
Overseas funds have been net buyers of $1.44 billion worth of shares so far this month, regulatory data has shown.
Key events to watch
On Monday, the Supreme Court is slated to hear appeal to ban iron ore mining in Odisha. The apex court will also hear Reliance gas pricing petition.
Monthly derivatives contract expiry on Thursday will be another key event to watch.
Copyright @ Thomson Reuters 2014
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