Marets ended the week higher, as the sustained post-budget rally continued.

So, it is likely that we may see more room for fund flows, until March 31, 2017, when the tax planning season ends. However, going into the election results of Uttar Pradesh, markets could be exceedingly volatile. The results are largely being perceived as a pre-cursor to the central government elections in 2019.

Stocks from the IT and pharma sector have seen some buying support in the last few days. It would be interesting to see if the same trend continues into the next week. This week was also an expiry week, which was also truncated, following a religious holiday on Friday.

Among the stocks in news was Idea Cellular, which jumped 6 per cent, following reports that Soft Bank may end up buying 15-20 percent in merged entity Idea Cellular-Vodafone).

On the global front there are not many cues. Markets would continue to look for data that could provide some clues. The Indian markets have seen a sustained rally since the Union Budget 2017. Valuations have not become very cheap at the moment and at some stage when valuations catch-up we may see a swift fall in the markets.

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