The mood is likely to remain quite cautious on the Indian bourses next week - a truncated one due to a holiday on Wednesday (2 October) for Gandhi Jayanti - with investors eyeing a slew of economic and corporate data.
Automobile and cement stocks will see plenty of action next week, with September sales and shipments figures setting the trend. Steel stocks will be in focus as well, with investors tracking prodution data for September.
On the economic front, the central bank will come out with the first quarter current account deficit numbers on Monday.
Markit Economics will release reports on India's factory and services sectors activities. The HSBC India Manufacturing Purchasing Managers' Index, that tracks activity of the country's factories will be out on Tuesday (1 October), and the report on the services sector will be released on Friday.
Foreign institutional investors bought fairly heavily in September, pumping in a net Rs 73,400 crore into the market (till last Thursday). The market will be banking on this set of investors to regain some lost ground and move on to new highs.
Besides FII activity, the rupee's performance against the greenback will be the key for the market's fortunes. Investors will also track crud oil prices for some direction.
With the reporting season just a couple of weeks away, investors may not be willing to indulge in any aggressive buying for now.
Speculation about the U.S. Federal Reserve's asset purchase program will continue to be a key trigger for the market. The euphoria over the Fed's surprise decision to maintain the pace of its asset buying program, has waned following reports that a tampering of sorts is very likely from October.
The U.S. markets closed lower on Friday (27 September), as concerns about the possibility of a government shutdown dragged down stocks. The Dow Jones Industrial Average lost about 70 points and the Nasdaq edged down marginally. This could set up a weak start for the Indian market on Monday. News from the domestic front will then take the centrestage.