 "Gujarat polls, industrial production and inflation data to guide markets")
With the voting for 89 seats in the first phase of the Assembly elections in Gujarat over on December 9, the market will be waiting for the second round of polling in 93 constituencies to be held on December 14.
The counting of votes will take place on December 18.
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Among others, the announcement of automobile sales data by the Society of Indian Automobile Manufacturers (SIAM) would be in focus.
According to Epic Research CEO Mustafa Nadeem, the automobile space will continue to perform well as the year-end sale will increase the sales and further news of hike in prices in the coming month will improve the margins.
Besides, the industrial output data and inflation numbers will set the tone for domestic equities during the week.
"India's industrial production, which was at 3.8 per cent, and manufacturing production, which was at 3.4 per cent, will be released and crucial to watch as the revival seen in numbers need to be maintained or it was a one-off event.
"Inflation, which was at 3.59 per cent, the highest in last few months but around comfortable levels, will also be eyed," Nadeem said.
Last week, the six-member Monetary Policy Committee (MPC), headed by Reserve Bank Governor Urjit Patel, had kept the policy rate unchanged at 6 per cent on expected lines but raised the inflation forecast for the remainder of the financial year to 4.3-4.7 per cent.
Over the last week, the Sensex gained 417.36 points, or 1.27 per cent, while the Nifty advanced 143.85 points, or 1.42 per cent.