Investors are bracing for October-December earnings results, as they look for signs of how much a slowdown in economic growth is impacting corporate profits.
As is customary, Infosys Ltd will unofficially kick off results from blue-chips when it reports earnings on Jan. 10.
Caution is also expected to prevail ahead of key economic indicators, including industrial output on Jan. 10, which tends to impact capital good shares.
Factory data will be followed by wholesale and consumer inflation later in the month, which will help determine whether the central bank raises interest rates at its policy review on Jan. 28.
Global cues will also be important, with China posting GDP, the United States posting monthly employment data, and the Bank of England and European Central Bank holding policy meetings.