Mumbai: Indian shares could start strongly on Monday on the back of demand from institutional investors ahead of the end of the fiscal year on March 31. This could infact extend a rally after indexes hit record highs for five consecutive sessions.
Investors will then eye the RBI's policy review on April 1, with analysts widely expecting it to keep interest rates on hold. Foreign flows would remain on watch after stocks have so far ignored everything negative globally, with overseas funds purchasing a net $3 billion so far this month.
A combination of foreign flows, hopes for a recovery in the domestic economy, and bets that main opposition Bharatiya Janata Party, perceived as more business-friendly, will come to power have driven strong gains in Nifty.
India's bond and forex markets would be closed on Monday because of a local holiday and on Tuesday because of the end of the fiscal year.
