Indian markets are expected to be range bound next week as investors turn "stock specific" as full-year corporate earnings season kicks off with software giant Infosys, dealers said.
Indian shares saw a new intra day record at 11,930.66 Friday before sliding sharply on profit taking.
The markets saw much volatility by the end of the week, dipping nearly 160 points, or 1.3 percent, on reports the market regulator had sought data from stock exchanges on a drastic run-up in share prices earlier in the week.
BSE officials said later this was "a routine" operation in which stock and price-related weekly data is supplied to the regulator whenever the markets show major swings.
"The markets had run up sharply and needed a cooling off. We saw software and automobile stocks retracing after they had risen sharply," said Soumeel Chakravarthy of KJMC Capital Market Services.
The Mumbai stock exchange's 30-share benchmark Sensex index closed Friday at 11,589.44, up 102 points or 2.7 percent from the previous week's close of 11,279.97. This was the seventh straight weekly rise for the Sensex.
The markets have risen nearly 24 percent this year on overseas fund flows into Indian stocks worth over 4 billion dollars in the new year.
Foreign funds invested 10.7 billion dollars in 2005.
French investment bank Credit Lyonnais in a recent report said profit growth of the 30 shares making up the Sensex index had slowed marginally.
Software giant Infosys will announce its full-year to March 31 corporate earnings next Friday, launching the financial reporting season.
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