"Consolidation is the last thing on the market's mind right now. We can expect the market to be bullish for weeks to come as the market fully digests the implications of a BJP-NDA led government let my Modi," said Raghu Kumar, co-founder, RKSV.
Narendra Modi rewrote history on Friday storming to power at the Centre with a "triple century", giving NDA an unexpected 336 seats in the Lok Sabha and BJP an absolute majority on its own for the first time in an election that decimated Congress to its lowest ever tally of 44.
NDA which comprises BJP and 24 smaller parties, scored a facile victory exceeding its own expectations as did the BJP which touched 282 seats in the 543-member Lok Sabha to become the first party in 30 years to get a majority on its own after Rajiv Gandhi's massive score of 417 seats in 1984.
"Now, the stage is set for a stable government to come in and push the policy paddle and escalate the speed of growth. In the absence of any major event this week, we expect the index to spend some time around current levels and accommodate the recently accumulated gains," said Jayant Manglik, President-retail distribution, Religare Securities Limited.
Besides, markets would focus on allocation of key ministerial portfolios and the first budget of the new government expected by July 2014.
"The NDA's landslide victory gives the alliance the flexibility of implementing policy measures as projected in the manifesto. Focus of the markets would now shift to government formation, following which policy implementation would occupy center-stage.
The next crucial task would be to assign key cabinet posts to the seasoned people so the policies are realistic and implementation is effective," Sunil Sarda, CEO & Director, Systematix Shares said.
The improved economic environment of the country and reforms shall have positive implication on sovereign rating which should result in an increase in inflows via the FDI and FII routes and help the INR to appreciate, he noted.
Market experts said that trend in investment by foreign institutional investors, global cues and movement of rupee would also hold key for the near term trend on the bourses.
Among major earnings this week are of State Bank of India and ITC.
The Sensex had surged 1,470 points to hit a new life-time high of 25,375.63 on Friday fuelled by hopes that the BJP government would fast-track reforms and accelerate economic activity.
It later closed at a record 24,121.74, a gain of 216.14 points.
Over the past week, the Sensex gained 1,127.51 points to 24,121.74.