Benchmark indices lost ground this week as markets across the globe were rocked by the diesel emission scandal at Volkswagen. European markets recovered late on Friday, while Indian markets were closed. US Fed Chairperson Janet Yellen hinted at an interest rate cut hike this week, which pushed global indices higher towards the end of the week.

Global factors will remain paramount for the markets this week. If there is any reaction in global markets it could have a telling effect on India. It would also be interesting to see, how banking stocks would behave ahead and after the credit policy. If the RBI's tone remains hawkish and markets get a whiff that there may be no further rate cuts, it could lead to fall in the markets.

By and large analysts are expecting the markets to continue to remain range bound after the RBI Monetary Policy.

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