Indian markets ended the week on a strong note on Friday, tracking gains in Asian stocks on easing concerns over higher rates and inflation.
Investors bought shares of recent underperformers such as pharma and financials after a tumultous last week.
The Sensex ended higher 322 points, or 0.95 percent, at 34,142 and the Nifty gained 108 points, or 1.04 percent, at 10,491.
The Indian rupee strengthened against the U.S. dollar on the back of gains in local equity markets.
The partially convertible rupee closed at 64.73 on Friday, up 0.50 percent from its previous close of 63.05.
So far this year, the rupee weakened 1.3 percent, while foreign investors have bought $895.80 million and $1.68 billion in equity and debt markets, respectively.
The stock markets remain close on March 2 on account of Holi.
Here's what to watch in the coming days.
Powell's testimony
Markets may well get a jolt of additional information on the outlook for U.S. interest rates over the coming week as newly appointed Federal Reserve chair Jerome Powell presents his first semi-annual testimony starting on Tuesday to both the houses of the U.S. Congress.
His comments could shed some light on the ongoing debate over the pace of rate hikes this year and beyond.
Powell will deliver the pre-released semi-annual Monetary Policy Report to Congress
Indeed, markets will be keenly watching Powell's performance from a confidence standpoint given he is a seasoned veteran but not an economist who is following in Yellen's footsteps, according to a note by Scotia Bank.
Italy votes
So far markets have largely ignored the Italian election but things are likely to change next week.
Italians go to the polls on March 4 and the result is expected to be officially announced on Monday.
The main parties to watch are Forza Italia, headed by Silvio Berlusconi, former prime minister; Democratic Party, headed by Matteo Renzi, also a former prime minister who quit the post in 2016; and 5 Star Movement with Luigi Di Maio as its leader.
Opinion polls in the months leading up to the election have pointed to a hung parliament where no one party will gain a majority to govern alone.
However, polls have shown that although Berlusconi's center-right is seen as the strongest coalition, M5S is the most popular single party.
Italy is the euro zone's third largest economy and the vote could have far-reaching consequences for the country's fragile economy, mirred with bad debts and soaring unemployment.
Auto sales data
Auto stocks will be in focus as the auto companies will start announcing monthly sales numbers for February 2018 starting from Thursday.
Economic data
Manufacturing: Markit Economics will unveil the results of a monthly survey on the performance of India's manufacturing sector for February on Wednesday.
Q3 GDP: The government will announce data on third quarter gross domestic product on Wednesday. GDP growth had recovered to 6.3 percent in the third quarter from 5.7 percent recorded in the first quarter.
U.S. home sales, GDP: In U.S., the data on new home sales measuring the number of newly constructed homes with a committed sale during January will be announced on Monday. Fourth quarter GDP data and pending home sales data for January will be unveiled on Wednesday.
