Besides, trend in investment by overseas investors and the movement of rupee will continue to drive stock markets.
The Sensex and the Nifty, which closed down at 25,228.17 and 7,542.10 on Friday, are awaiting positive triggers.
"Markets ended the week with a big fall. Oil price concerns caused by geo-political worries in Iraq marred sentiments. Going ahead, we see monsoon progress and Budget to be the two key triggers," said Dipen Shah, Head-Private Client Group Research, Kotak Securities.
Inflation-based on wholesale price index (WPI) for May would come on Monday. WPI inflation eased to 5.2 per cent in April 2014, from 5.7 per cent in March 2014.
Any easing in WPI inflation will add fuel to speculation that the RBI will cut lending rates at its August 5 review.
Trading could also be influenced by reports on corporate advance tax payment for the first installment. Tax payments are taken as a proxy for some company earnings, traders say.
The market mood, however, continues to be cautious.
"Considering Friday's close, we may see further decline in the index on Monday," said Jayant Manglik, President-retail distribution, Religare Securities Limited.
Civil unrest in major crude producer Iraq pushed up oil prices. Surging crude oil prices in the global markets on concerns that unrest in Iraq could lead to disruptions in the country's oil supplies had hurt the Indian stocks on Friday.
On the global front, the Federal Open Market Committee (FOMC) will undertake monetary policy review on June 17-18.