Domestic equity markets would track inflation data, the pace of COVID-19 vaccination and reopening of the economy this week, say analysts.
Market participants are also awaiting the US central bank's monetary policy meeting for its stance on continuing stimulus measures, they said.
"This week, India's inflation data for May will be the key economic driver in the domestic market. On the global front, the Fed's monetary policy meeting will be in focus as the market awaits its stance on continuing stimulus measures," said Vinod Nair, Head of Research at Geojit Financial Services.
Nirali Shah, Head of Equity Research, Samco Securities said the US FOMC meet would keep markets volatile.
During the last week, the 30-share BSE benchmark jumped 374.71 points or 0.71 per cent. The 30-share benchmark touched a lifetime high of 52,641.53 points on Friday.
"Investors will continue to monitor economic data and COVID-19 related updates," said Sumeet Bagadia, Executive Director, Choice Broking.
"The key factors to watch out remains the pace of vaccination and the re-opening of the economy. We would also be watchful of trends in global liquidity and the policy stance of central bankers," Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company said.
Besides, movement of Brent crude, rupee and foreign institutional investors (FIIs) would also be watched by investors.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said, "Markets are expected to monitor the spread of monsoon in the coming weeks, daily new case count and easing of lock down restriction."