For the sixth week in a row now the Sensex gained 438.54 points, or 1.28% to touch a life time high at 34,592.39, while the broader Nifty rose 122.40 points, or 1.15% to close at a new milestone level of 10,681.25.
Among the sectoral indices, Realty gained the most followed by IT, Teck, IPO, Oil&Gas, Metal, FMCG, CapitalGoods, Banks, HealthCare and Consumer Durables. While Power and Auto segments saw profit-booking.
The quarterly earnings from bluechips HDFC Bank, ITC and Wipro as also wholesale inflation data would set the tone for the bourses this week, say analysts. "Market is likely to maintain its current positive momentum given strong liquidity and buoyancy in global markets. But in the near term, the market focus will be on Q3 earnings season and budget related cues which will dictate the trend," said Vinod Nair, Head of Research, Geojit Financial Services.
The stock markets are also likely to react to IIP and retail inflation data, which were announced after market hours on Friday. A robust performance by the manufacturing sector took the industrial production growth to 17-month high of 8.4% in November, but retail inflation at 17-month high of 5.2% in December dampened the euphoria.
"Equity markets had positive ending with indices closing at all-time high levels. Results season has kicked in with large caps like TCS results in line with expectation. Infosys reported better results. "Market enthusiasm continues. However, rising crude prices and higher yield are concerns as of now," said Anita Gandhi, Whole Time Director, Arihant Capital Markets.
"Inflation numbers of Monday will be eyed. Results season will be in flow with some heavyweights like Hindustan Unilever, Yes Bank, ITC and Kotak Mahindra will be coming out with earnings and of course, the after-effects of Infosys will further give some momentum," said Mustafa Nadeem, CEO, Epic Research.
"Focus has turned to the ongoing earnings season and the upcoming union budget," said Sanjeev Zarbade, Vice-President – PCG Research at Kotak Securities.
"Market will be keenly watching important policy announcements that the budget will deliver which will really decide the direction of the market in the near term," said Jimeet Modi, Founder and CEO, SAMCO Securities.