Stock market participants will be keenly awaiting the Union Budget to be presented on February 1 to decide their future course and will also have their eyes glued to corporate earnings, including of blue-chips HDFC and ICICI Bank, this week, according to experts.
PMI data for the manufacturing sector which is due on Thursday would also influence trading sentiments.
"Earnings upgrade is more likely after seeing the initial set of results but the current rich valuation and upcoming economic events may interrupt aggressive buying... The week ahead is eventful with a slew of economic data but the major event is the Union Budget and market will likely to brace more volatility," said Vinod Nair, Head of Research, Geojit Financial Services.
On expectations from the Budget 2018-19, IIFL Partner and Head of Research Amar Ambani said, "In the last full Budget before the 2019 general elections, capital market investors would be keen to know of the government's stand on two critical issues: fiscal consolidation and tax burden on capital market investments."
"Expectations are running high as it will be the first post-GST and last full-year Budget before the general elections in 2019. Markets expect the government to follow fiscal prudence path and increase infrastructure and rural spending," said V K Sharma, Head Private Client Group and Capital Market Strategy, HDFC Securities.
Last week, the 30-share Sensex added 538.86 points or 1.51 per cent; while the broader Nifty gathered 174.95 points or 1.60 per cent.