The RBI policy review on Tuesday will be key in determining the direction for shares.
Most analysts polled by Reuters say the RBI is unlikely to lower key interest rate as inflation remains sticky, but may opt to cut the amount of deposits lenders must keep with the central bank.
A cut in the repo rate has the potential to spark gains in shares, which have consolidated this month with the BSE index down 0.7 percent in October, after the government's fiscal and economic reforms sparked a rally in September.
Sectors benefiting from rate cut such as property and autos will also be in focus as a favorable decision by the RBI could bolster demand for big ticket items ahead of the Diwali in mid-November.
By contrast, a cut in the cash reserve ratio could boost bank shares given lenders do not earn interest from the deposits held at the RBI.
Earnings will remain a focus, with earnings broadly well received, despite disappointment in some sectors, such as state-run lenders.
Sunday: Possible reshuffle in cabinet; JSW Steel
Tuesday: Key earnings: Maruti Suzuki India
Wednesday: Fiscal deficit data, infrastructure output data
Thursday: HSBC manufacturing PMI for October (1030 IST)