The fiscal cliff hanging over the US might continue to weigh sentiments down. There could be gradual churning of portfolios as investors move away from defensives to high beta names. Also, the results for the second quarter of 2013 are expected with the results of Infosys in the next couple of weeks.
Markets are expected to eagerly await the earnings season, though results are not expected to be spectacular.
A lot of policy reform expectations have been built in from the government and if there is a disappointment on this front it could lead to a sell-off in the markets.
PSU banking stocks are expected to be in the limelight on hopes of a rate cut later in October when the RBI meets to review its monetary policy. Banks and metal stocks will continue to be in the limelight.
Investors are advised against taking too many bullish bets in the market.