Investors are cautious before the start of the quarterly corporate earnings season. Infosys will be the first big company to announce its results on October 12. The same day, the government will come out with its latest report on the industrial production.

Indian markets will also partly be influenced by trend in the global markets. The euro zone debt crisis continues to act as a major overhang for the global economy.

The US economy too seems to be losing some steam while China too is grappling with a deeper-than-anticipated slowdown. The monthly US jobs data will have some bearing on global markets in the near term, along with events out of Europe.

Back home, the markets will focus on the RBI’s monetary policy meeting on October 30. With inflation showing no signs of abating and government's fiscal conditions tight, the RBI is unlikely to budge on its stance on policy rates at least this month.

It could, however, climb down from its hawkish position once inflation cools a little and the Centre takes more steps to contain its swelling fiscal deficit.

The government has been taking a series of policy measures to try and restore investor confidence in the Indian economy.

Some more policy steps appear to be on the anvil and the markets are keenly awaiting the same before taking a fresh call on stocks.