Reversing their three-month selling trend, foreign portfolio investors (FPIs) infused a net Rs 20,814 crore in Indian equities during the first five trading sessions of June.
The US Fed interest rate decision will be a major event for market participants this week.
"Simmering geopolitical tensions may also affect the global markets which will have an impact on ours as well," said Vinod Nair, Head of Research, Geojit Financial Services.
Besides, companies like PVR, Titan, Hero MotoCorp, Hindalco Industries and M&M will report their quarterly earnings this week, which may trigger stock-specific action.
During the last week, the BSE benchmark Sensex surged 1,863.14 points or 5.74 per cent.
Market analysts attributed the upmove to positive sentiment generated from gradual lifting of lockdowns across countries.
Motilal Oswal Financial Services Head - Retail Research Siddhartha Khemka said, "Market has witnessed sharp rally over last few days, and hence may consolidate or take a breather, before starting the next leg of rally." "Our domestic markets are largely mirroring the global counterparts in the absence of any positive trigger on the local front. We feel the banking index still has steam left and that could help the index to inch higher alongside others," said Ajit Mishra, VP - Research, Religare Broking.
"However, any negative development on the global front might derail the momentum," he added.
Meanwhile, India registered its highest single-day spike of Covid-19 cases for the fifth consecutive day on Sunday, with 9,971 new infections taking the country's tally to 2,46,628, while the death toll rose to 6,929, according to the health ministry.