The trajectory of the spread of Covid-19, global cues and quarterly earnings would be the main drivers for the equity markets in the holiday-shortened week ahead, analysts said. Markets will be closed on Monday for 'Id-Ul-Fitr'.

"The market is feeding off expectations, expectations of more boosters from the government and RBI, expectations of business normalisations post easing of lockdown sanctions, expectations of infections peaking out.

"However, the time frame or the quantum of support is unknown and may not be determinable. Any news regarding the slowdown in the number of infections or specific sectoral news will have an impact on the markets," said Vinod Nair, Head of Research, Geojit Financial Services.

Covid-19 cases in India saw the biggest spike for the third consecutive day on Sunday with 6,767 new infections reported in the last 24 hours, taking the nationwide tally to 1,31,868, while the death toll due to the disease rose to 3,867 after 147 more fatalities, according to the health ministry.

"Tightening of geopolitical tensions between US and China would also be key to watch out for apart from the trajectory of spread of Covid-19," said Shibani Sircar Kurian, Executive Vice President, Fund Manager and Head- Equity Research, Kotak Mahindra Asset Management Company.

HDFC, Dabur India, Lupin, TVS Motor Company and Voltas are some of the major companies scheduled to report their quarterly earnings this week.

"We may see some rebound this week due to oversold positions in banking and financial space but sustainability would be difficult at the higher levels," Ajit Mishra, VP - Research, Religare Broking Ltd, said.

During the last week, the Sensex declined 425.14 points or 1.36 per cent. "In the coming truncated week, US jobless claims and Q1 GDP numbers are expected on May 28," said Deepak Jasani, Head - Retail Research, HDFC Securities.