New Delhi, Dec 5 (PTI) Volatility is likely to continue in the stock market this week amid Omicron uncertainty and the RBI monetary policy meeting will be a key driver for benchmark indices going ahead, say analysts.

It will be an event-packed week for the markets, with RBI policy and several macroeconomic numbers scheduled to be announced, they added.

"Volatility is likely to continue amid Omicron uncertainty, RBI credit policy, and macroeconomic numbers. There are lots of news flows on the Omicron variant which are causing volatility in the market while on the domestic front we will have the outcome of an important monetary policy of RBI that is scheduled on December 8.

"We will also have our IIP and inflation numbers this week however they will be released on Friday after market hours," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Equity benchmarks on Friday tumbled after India reported its first case of the Omicron variant of the coronavirus.

"We expect volatility to remain high this week as well as we have some important data and events lined up. First, participants will be closely eyeing the monetary policy review meet outcome on December 8. On the macroeconomic front, IIP number and CPI inflation are scheduled for December 10," Ajit Mishra, VP Research, Religare Broking said.

Yesha Shah, Head of Equity Research, Samco Securities said that with a slew of events on the horizon, traders should brace themselves for an action-packed week. Market players will attempt to read between the lines of the RBI's monetary policy outcome.

During the last week, the BSE benchmark gained 589.31 points or 1.03 per cent.

"RBI's monetary policy meeting which is scheduled to start this week will be a key market driver in the coming days as investors await MPC's policy decision considering the uncertainty surrounding the new virus which persists in the global economy.

"Major domestic data points awaiting its release this week are November's inflation data and October's industrial & manufacturing production data," said Vinod Nair, Head of Research at Geojit Financial Services.

RBI monetary policy outcome to drive markets amid Omicron uncertainty and key macroeconomic releases this week. Market volatility is expected to continue due to Omicron-related uncertainty, with analysts citing the variant as a key source of short-term market swings. The principal domestic driver is the RBI monetary policy review and the Monetary Policy Committee's decision, which investors will interpret alongside major macroeconomic releases-industrial production and consumer price inflation-to assess policy stance and market implications.