Progress in trade-dialogues between the United States and China, macro-economic data, expectations of more stimulus measures from the government, foreign fund flow, oil price movement and the rupee's trajectory against the US dollar would steer indices this week.
Markets, which will remain shut on Tuesday on account of Muharram, will await data on Industrial Production for the month of July, and CPI Inflation print for the month of August, scheduled to be released on September 12. Further, Wholesale Inflation data for the month of August is slated to be released on September 16.
That apart, US economic adviser Larry Kudlow's comment that the talks between Washington and Beijing trade negotiators could "heat up" during meetings in October, could keep investors jittery.
For Monday, trends on SGX Nifty suggest a flat to positive start for the domestic indices taking cues from Asian peers. Asian stocks registered modest gains on Monday, amid a cautious market mood as investors pinned expectations on likely stimulus to support growth in the world’s major economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%, Australian stocks edged up 0.1%, South Korea's rose 0.8% and Japan's Nikkei was up 0.5%.
Equity benchmarks settled with nearly a per cent gain on Friday. The S&P BSE Sensex added 337 points or 0.92% to close at 36,982 level, while the broader Nifty50 settled at 10,946-mark, up 98 points or 0.91%.
On Wall Street, US indices ended flat during the overnight trade on Friday. The Dow Jones settled 0.2 % higher, while the Nasdaq Composite closed with gains of 0.17%.
In the commodities market, oil prices rose above $61 per barrel after the US Federal Reserve Chairman Jerome Powell said the central bank will act "appropriately" to sustain an economic expansion in the world's biggest economy. Investors would also eye the OPEC meeting, scheduled for Sept 12, to track Brent's movement.
Now let's take a look at the top headlines and stocks that will remain in focus --
>> Auto industry may have to wait longer for GST cut on cars as weak revenue position has made the Council wary on rate-cut.
>> 18 PSBs hit by 2,480 cases of fraud of over Rs 31,000 cr in Q1
>> India is unlikely to underperform emerging markets: Sanjay Mookim, India Equity Strategist for Bank of America Merrill Lynch told Business Standard in an interview.
Before we wrap, here is a stock recommendation by Angel Broking --
The brokerage rcommends buying Bharat Forge at current levels for a target of Rs 426. The stop loss can be placed at Rs 375.