RBI policy, Q4 earnings to drive markets this week: Experts
New Delhi: The Reserve Bank's monetary policy review and the next set of corporate results will be key for stock markets in this holiday-shortened week, experts have said.
Besides, auto stocks will also remain in focus as companies from this sector will start unveiling sales data for April from Wednesday.
"There will be some correction this week, as indicated by Friday's trading session, after seven-day rally. Investors are on the edge and will wait for RBI's policy to decide whether to sell and go away in May or hang in there. Mood will also depend upon some big-ticket Q4 numbers slated in the week," said Vikas Jain, Founder, Aditya Trading Solutions (ATS).
Stock markets will be closed on Wednesday for 'Maharashtra Day'.
Among major earnings this week are Hindustan Unilever, Bharti Airtel, Ambuja Cements and ACC.
Easing inflation has raised expectations that the central bank might go for cut in interest rate in its monetary policy meeting on May 3.
The wholesale price index (WPI) based inflation fell to a three year low of 5.96 percent in March from 6.84 percent in February on falling food prices.
Meanwhile, the BSE benchmark Sensex gained for the second straight week on buying mainly in rate-sensitive sectors on hopes of a rate cut by the Reserve Bank.
The 30-share Sensex gained 1.42 percent to end the week at 19,286.72.