The BSE Sensex had ended at 29,361.50, logging a gain of 141.38 points or 0.48% on a special trading session after the Union Budget on Saturday. The Sensex logged a gain of 130.09 points or 0.45% last week.
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"Markets are expected to remain volatile as the budget announced was at par with the expectations of D-street and thus market has already discounted the noise going on in the market," said Rohit Gadia, Founder & CEO, CapitalVia Global Research.
The Union Budget for 2015-16 has proposed a 5% reduction in corporate tax over the next four years, replacing of wealth tax with an additional 2% surcharge on super-rich and raised excise duty and service tax rates that will make a host of articles and services costly.
"The Budget lays down the roadmap for corporate tax rationalization, GST implementation by April 2016, laws to curb black money. This only indicates government's long term vision and preparation for laying foundation for double digit growth," said Vikas Khemani, President & CEO - Edelweiss Securities.
"The way markets closed on Saturday, possibility of further rise is quite high from the current level but a lot more depend upon the reaction from the foreign investors post weekend," said Jayant Manglik, President-retail distribution, Religare Securities.
Trading in stock market would also be influenced by investment trend by overseas investors, movement of rupee against the dollar and oil price. Stock markets would remain close on Friday for Holi.
"I believe that the markets in the long term will react favourably to the Budget as there are a number of new steps and expect that the markets should grow by 15% to 20% every year for the next 2-3 years," said Anand Rathi, Founder & Chairman at Anand Rathi Financial Services.
With the Union Budget event out of the way, markets are likely to look forward to monetary policy easing measures and corporate developments.
"We are bullish on domestic oriented sectors like automobiles, cement, capital goods, and banks. Defensive sectors like FMCG, pharma and IT could perform in line with broader markets. We maintain our December 2015 Sensex and Nifty target of 32,500 and 9,750, respectively," said ICICI Securities Ltd.