Equity markets this week will be largely guided by trends in global stocks, foreign funds' trading activity and progress of monsoon, analysts said.
Investors will also track the movement of rupee against the US dollar and crude oil prices.
Benchmark indices Sensex and Nifty closed at fresh lifetime highs on Friday.
Market analysts attributed the rally in the markets to the fact that the US Federal Reserve did not raise interest rates, while positive global cues and foreign institutional investors (FIIs) turning net buyers of local equities also supported the uptrend.
"The Indian market will be closely monitoring the progress of the monsoon season. Globally, there is expected to be an increase in volatility in the US market over the coming week. This is due to the upcoming semi-annual testimony of Fed Chairman Powell to Congress," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
According to analysts, a steady recovery in global indices, especially in the US, played the catalyst in the surge in domestic equities last week. Last week, the BSE benchmark jumped 758.95 points or 1.21 per cent.
"The market will respond to domestic and global cues, crude oil prices, trends in global markets and investment by Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) in the coming days," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
The 30-share BSE index zoomed 466.95 points or 0.74 per cent to settle at a record closing high of 63,384.58 on Friday. The index went ahead of its earlier lifetime high of 63,284.19 on December 1 last year.
The NSE Nifty climbed 137.90 points or 0.74 per cent to end at its lifetime peak of 18,826. Its previous record peak was 18,812.50.
"Going ahead, we feel the performance of the US markets will continue to play a key role," said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.
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