RBI’s interest rate decision is a major factor that will drive the trends in the equity market this week, while global cues and foreign fund trading activity would also be watched, analysts said. Market investors would also track the state election results later this week, they added.

 “Global cues continue to cause volatility, but this week the market’s focus will shift to domestic cues like RBI policy and state election results. The outcome of the RBI policy is scheduled for 7 December, while the results of Gujarat and Himachal Pradesh assembly elections will come on 8 December,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

 On the global front, the US bond yields and the dollar index have fallen sharply, and markets will continue to watch their move from here, Meena added.

 From macroeconmic data front, Purchasing Managers’ Index (PMI) data for the services sector is scheduled to be announced on Monday.

 Investors would keenly watch for the outcome of Gujarat state election that is due this week, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

 The equity market depicted a positive trend last week as the BSE benchmark jumped 574.86 points or 0.92 per cent.

 According to Apurva Sheth, Head of Market Perspectives, Samco Securities, the focus would be on the RBI’s interest rate decision.

 “The two immediate triggers — RBI’s credit policy this week and the US Fed meeting in mid-December on the rate front — would determine investors’ mood in the near term,” Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, said.