Global cues, earnings major drivers for Street

Global trends, WPI inflation data for April and the ongoing quarterly earnings of corporates would be the major driving factors for the stock markets, analysts said.

Investors would also keep a tab on the movement of foreign institutional investors who are on a selling spree in the domestic equity market for the past many days.

"Inflation concern and monetary tightening across the globe are key concerns for the equity markets. Equity markets are under the strong grip of bears however they look extremely oversold and due for a pullback rally.

"The sell-off in the US market, especially in tech stocks, was very severe and there is some stability in the last two trading sessions that may provide some respite to the bulls," said Santosh Meena, Head of Research, Swastika Investmart Ltd. Meena said there are no major cues for this week therefore direction of global cues will be important, however some stock-specific movement will continue amid the tail-end of Q4 earnings.

"On the domestic front, listing of LIC IPO will be a key sentimental trigger for the Indian equity market. FIIs are selling relentlessly whereas DIIs are trying to compensate for their selling therefore their behaviours will also play an important role in the direction of the market. Movement of the dollar index, crude oil prices, and direction of rupee will be other important factors," he added.

Investors would also watch out for WPI inflation data for April which would be announced on Tuesday, analysts said. Bharti Airtel, DLF, IOC, ITC, IDFC, JK Tyre & Industries and NTPC are among the companies that will announce their financial results this week.