Indian shares are expected to rise further next week, led by domestic and overseas fund buying as liquidity keeps driving buying momentum, dealers said.
But they said the markets could see choppiness at higher levels after a fifth straight record close this week.
"Corporate earning performances have been strong. We still hear of funds and high net worth individuals on the sidelines keen to invest at lower levels. This liquidity will continue to drive the markets further," said R, Balakrishnan, director with Parallex Consultancy Services.
The Mumbai stock exchange's benchmark Sensex index closed Friday at 12,359.7, up 507.8 points or 4.28 percent from its previous week's close of 11,851.9.
The Sensex has risen more than 300 percent since April 2003 on sustained overseas and domestic fund buying on the back of high economic growth and strong earnings figures.
The markets have risen nearly 32 percent this year on overseas fund flows into Indian stocks worth 4.3 billion dollars since the start of the year.
Foreign funds invested a record 10.7 billion dollars in 2005.
"We expect choppiness in coming days as overseas funds will seek to book profits at these levels," said Manoj Kakaiya, a dealer at ULJK Securities.
Foreign funds last month sold actively in index-stocks at higher levels, finally emerging net buyers for just 117.9 million dollars.
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