Banks and financial stocks will be in focus as the government has set reform of the insurance sector as a priority for the parliament session that begins on Thursday.
"We may open unchanged or slightly lower with global markets in the red. But the market sentiment stays positive with all the liquidity flowing in," said Kunal Sukhani, manager of institutional equities at Asian Markets Securities.
Wind turbine maker Suzlon Energy will be in focus after its German unit REpower Systems signed a contract to supply wind turbines with a total capacity of 18.45 megawatts to U.S. firm Heritage Sustainable Energy LLC.