Besides, factors such as monsoon and rate cut hopes would also be in focus, they added. This week major companies like Tata Power, Tata Steel, Bajaj Auto, ITC, SBI and DLF will announce quarterly results.

Participants will also keep an eye on the Reserve Bank for its stand on the key policy rate. Inflation cooling to a four-month low in April and industrial output falling to a five-month low in March stocked hopes of an interest rate cut by the RBI.
"With the inflation taming down and industrial activity touching multi-month lows, RBI could soon be seen in action," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio. Meanwhile, the India Meteorological Department (IMD) forecasted that monsoon may hit the Kerala coast on May 30 even as the country stares at the possibility of below normal rains for a second consecutive year.
"Market has discounted the disappointment in corporate earnings. The only concern remain is the tight liquidity condition due to FII selling," Director-cum-research Head of Amrapali Aadya, Abnish Kumar said.

Meanwhile, 26 business agreements worth over USD 22 billion were signed between Indian firms -- including Adani Group, Bharti Airtel and Welspun -- and their Chinese counterparts on the last day of Narendra Modi's three-day visit to China on Saturday.
The benchmark BSE Sensex ended the week at 27,324.00 with a gain of 218.61 points or 0.81 percent. It has gained 312.69 points or 1.16 percent in the last two weeks.

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