Strong earnings from ICICI Bank and Kotak Mahindra Bank are likely to aid market sentiment. ICICI Bank reported very strong earnings with deposit growth of 18 percent and improvement in asset quality. Kotak Mahindra Bank reported a strong loan growth at 17.5 percent year-on-year. NIM remained strong at 5.57 percent.

Reliance Industries reported improvement in operational performance led by consumer-facing businesses. The retail business revenues were up 20 percent while the steady quarter from Reliance Jio, subscriber addition was very strong.

US markets closed largely flat on Friday, but Dow Jones eked out narrow gains. It ended in the green for the 10th-straight day on Friday, its longest rally since 2017.

All eyes will be on the US Fed meet on July 25 and 26. After pausing in June, the US Federal Reserve is widely expected to hike interest rates again on Wednesday, adopting its most restrictive monetary stance for 22 years despite recent signs of slowing inflation.

Important earnings this week include Tata Motors and Bajaj Auto on Tuesday, July 25, Axis Bank, Cipla, Dr Reddy's Laboratories, Tech Mahindra and Bajaj Finance on Wednesday, July 26.