Reuters Market Eye - Stocks, rupee, and bonds are likely to be boosted after S&P raised India's outlook to "stable" from "negative."
However, caution is expected ahead of RBI policy review on Tuesday.
RBI is seen holding rates and the next rate cut is seen only in April-June 2015.
Volatility is also expected as banks square off books ahead of the end of the quarter.
Markets are closed on holiday from Thursday to Monday due to festivals.
For bonds, some support is seen after the government says it will undertake "substantial" switch/buyback operations of bonds.
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Government says will borrow 2.40 trillion rupees ($39.25 billion) via bonds in the second half of 2014/15. The borrowing target is within expectations.
For shares, window-dressing by funds could spark some buying on recent gainers such as midcaps.
KEY FACTORS/EVENTS TO WATCH
No fixed date - India external debt
Tue: RBI policy review
Thurs: Markets closed
Fri: Foreign exchange reserves data
Bank loan growth
Markets closed
(Reporting by Abhishek Vishnoi)