"IIP data on Friday shall impact the market trend. Also, July-September corporate results will start and will have stock as well as sector-specific impact," Bonanza Portfolio Vice President Rakesh Goyal said.
A weaker-than-expected August industrial output data on Friday will be a key input ahead of the Reserve Bank of India's policy review on October 30, an expert said.
According to Milan Bavishi, Head Research, Inventure Growth & Securities: "The markets are expected to remain volatile over the coming weeks primarily, due to swift movements in US dollar.
"While currently, rupee is showing signs of strengthening, temporary weakness in rupee cannot be ruled out. This can result in profit booking in markets."
The rupee looked weary after posting its fifth straight weekly gain and closed at 51.85 to a dollar, dealers said.
Analysts, however, say the big-ticket reform measures announced by government last week, including FDI in insurance and pension, will continue to provide comfort to the markets.
"... it is becoming clearer that government is on a reform drive and markets are likely to derive comfort from these reassuring moves," Edelweiss Securities said in a report.
Market participants will also take cues from FIIs, who have bought stocks worth 3,300 crore in October so far.
Angel Broking in a report on expectations from second quarter results said: "The continued trend of slowing growth and elevated inflation is expected to impede corporate earnings performance to some extent in Q2 FY'13 as well.
"Sectors such as banking, IT, mining and metals are expected to contribute considerably towards Sensex earnings growth for the quarter while oil and gas and telecom sector are likely to weigh down on overall earnings."
Markets experts said investors will also track the two-day trip by top US officials, led by Treasury Secretary Timothy Geithner, this week.
Geithner will be accompanied by Federal Reserve Chairman Ben Bernanke, besides others on two-day visit beginning October 9, were they are scheduled to have several high-level meetings in the capital and Mumbai.
On the global front, unemployment rate in the US last month dropped to 7.8 per cent and that could help Asian markets open higher on Monday, said brokers.
The 30-share Sensex closed at 18,938.46 while the 50-share Nifty ended at 5,746.95 on Friday, snapping a four-day rally.
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