Indian markets have been on a roll in the last few weeks as Foreign Portfolio Investors have resumed purchases of stocks in Indian markets following the spectacular results for the BJP in the UP elections. The fresh flow of liquidity has not stopped despite the US Fed raising interest rates. What this means is that the markets could continue to rally next week, though there maybe some selling pressure that could emerge from domestic institutions.
It is likely that we might not see too much of an improvement in numbers this earnings season. So, it makes sense to just wait and hold until the earning season pans out. Global cues would assume great significance next week, particularly from the US. This week markets fell sharply on one particular day in the US, after investors digested a slew of data that came in.
Those who have been waiting on the sidelines to buy into stocks may have to wait for some more time, as there may not be a significant drop on account of the huge liquidity around.