'Inflation data, global cues to set tone for mkts this week'

Inflation data based on wholesale price index for February, global cues and developments in the ongoing session of Parliament would dictate the near-term trend on the bourses, say experts.

Besides, overseas investment trends, movement of rupee against US dollar and buzz on how soon US interest rates may inch northward will also be crucial for markets, they added.

The benchmark S&P BSE Sensex concluded last week at 28,503.30, reflecting a sharp fall of 945.65 points, or 3.21 per cent. This is the biggest weekly fall in 2015. After retail inflation data came higher-than-expected, speculation is rife that RBI will pause before cutting rates aggressively.

"This week, participants would be eyeing corporate advance tax data, which could provide cues on March quarter earnings. Developments in the ongoing session of Parliament will also be closely watched. On the macro economic front, inflation data based on wholesale price index for February, 2015 will be unveiled on Monday," said Jayant Manglik, President-retail distribution, Religare Securities.

The Budget session commenced on February 23 and concludes on May 8. However, first part of the session will continue till March 20 and will again reconvene after a month.

Among global events, a two-day meeting of the Federal Open Market Committee (FOMC) is scheduled on March 17-18, 2015. Investors will closely be watching Fed chief Janet Yellen's conference for any hints on how patient the central bank will be before tightening its monetary policy, he added.

Both local as well as foreign investors are keeping a close eye on the US interest rate outlook. Some experts see the domestic markets moving sideways in the near-term.

"After Union budget, the most anticipated macro event which is watched by markets worldwide is the FOMC meet that is scheduled this week where markets fear rate hike by Fed backed by reviving growth and better-than-expected jobs numbers. We expect the markets to remain sideways bullish this week," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Among other events, US industrial production data for the month of February is due on March 16. Bank of Japan's (BoJ) two-day monetary policy review is scheduled on March 17 and 18.