Indian shares are seen slipping a touch in range-bound trading this week, despite positive triggers from strong quarterly earnings reports, as investors sit it out ahead of the outcome of the general election.
The election will be held in five phases from April 20 to May 10, with the Bharatiya Janata Party-led coalition widely expected to return to power and push ahead with its reforms.
The 30-share Bombay Stock Exchange index closed at 5,861.63 points after a special trading session on Saturday, ending the week around 0.40 percent higher. But analysts said trade this week could be choppy on election jitters.
"The index will slide around 200 points until the election outcome is known in May," said Ajit Surana, managing director of Dimensional Securities.
Other analysts said investors would likely pick bargains in the weeks ahead of the election results in mid-May.
Surana expects bank stocks to gain from a recent Supreme Court ruling allowing banks to quickly take over and sell assets of companies defaulting on loans. They are also benefiting from a retail loan boom in India's fast growing economy.
Satyam Computer Services Ltd, India's No 4 software exporter, is due to report quarterly earnings on Wednesday.
Bellwether Infosys Technologies Ltd and Wipro Ltd, the No 3 software exporter, reported good earnings last week, but gave conflicting growth forecasts. Wipro said it expected steady growth, while Infosys said growth may slow.
Concerns also persist over opposition in the United States to the outsourcing of jobs to India, while the Indian rupee firmed last week on some central bank intervention amid strong foreign investment inflows.
Cement makers will also gain on firm prices in a busy construction season and on expectations the government's plan to build roads and improve infrastructure will boost demand.