Indian markets are likely to see volatile trading next week with investors keen to lock in gains at higher levels and local funds buying selectively into index and mid-sized companies, dealers said.
Indian shares saw a new intra-day record at 11,365.9 on Friday, but dealers said buyers should be wary of making fresh investments with the market at record levels.
Cash-rich mutual funds, who were sellers early this year but who were keen to churn their portfolios ahead of the end of the fiscal year, bought up to 37 billion rupees (829 million dollars) of Indian stocks in March.
"We should see consolidation at these levels. The markets may not run up in April as they will watch the full-year corporate earnings performance from mid-April onwards," said Manoj Kakaiya of brokerage ULJK Securities.
The Mumbai stock exchange's 30-share benchmark Sensex index closed Friday at 11,279.97, up 329.6 points or three percent from the previous week's close of 10,950.3. This was the sixth straight weekly rise for the Sensex.
The markets have risen 20 percent this year on overseas fund flows into Indian stocks worth 3.8 billion dollars in the new year.
Foreign funds invested 10.7 billion dollars in 2005.
Domestic brokerages say India's long-term economic growth picture continues to look robust. "All the monthly indicators continue to remain strong, indicating the underlying economic momentum ... industrial growth, automobile sales, cement despatches and cellular subscriptions. We believe our full-fiscal growth target of 8.3 percent is achievable," BRICS Securities said in its latest report.
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