"Markets are expected to remain volatile amid geopolitical tensions. It is expected that market participants will closely watch developments, if any, in North Korea after recent hydrogen bomb test. Further, all eyes are on FOMC meeting scheduled later this month.
On the macro front, industrial production data for July will be announced on Tuesday as also the inflation data based on consumer price index (CPI) for August. Inflation data based on wholesale price index (WPI) for August will be announced during market hours on Thursday.
"For the week ahead, market would keenly watch for any development in global markets. The key data points to be watchful are IIP, CPI and WPI," said Vinod Nair, Head of Research, Geojit Financial Services.
Over the last week, the Sensex fell by 204.71 points, or 0.64 per cent, while the Nifty lost 39.60 points, or 0.39 per cent.