RBI policy to set market trend; monsoon's pace on watch
"Monsoon progress and outcome of RBI's monetary policy review to dictate near term market trends. If the monsoon's intensity is as predicted then there is some more juice in the rally, else the market will level out here for some time," said Vijay Singhania, Founder-Director, Trade Smart Online.
The RBI is scheduled to hold its next monetary policy review on June 7.
"RBI's monetary policy review on June 7 is unlikely to yield any significant outcome though market commentary from the central bank could set the tone for future economic initiatives," said Gaurang Shah, Vice President, Geojit BNP Paribas Financial Services.
Besides, industrial production data for April which is due on Friday may also influence sentiments.
"Major event of this week is RBI policy meet which will be held on Tuesday and the market will watch this event carefully. Other important data release includes IIP numbers on Friday," said Nirdosh Gaur, Managing Director and CEO, Moneypalm.
There is no possibility of a "deficient" monsoon this year and 96 per cent chances are that the rainfall would be "normal to excess", India Meteorological Department (IMD) had said.
"Going ahead, markets will wait for important events like the RBI policy meeting. Timely onset of the monsoons will be a positive for the markets," said Dipen Shah, Senior Vice President, Research Analyst, PCG Research, Kotak Securities.
The BSE Sensex extended its gains for a second week in row by garnering 189.43 points to close at 26,843.03.