Analysts say while the overall market sentiment will remain positive on sustained large-scale overseas fund inflows into the domestic trading ring, bulk investors are likely to consolidate their portfolios in the days ahead.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed Friday at 6,322.76, representing a gain of 287.73 points or 4.8 percent over its previous week's close.  

The Indian stock market has crossed the 6,300-level for the first time in trading history. The key index touched an all-time closing high of 6,328.43 Thursday, bettering its previous record high of 6,234.29 touched Tuesday.

Blue-chip equities have soared sharply higher in the last one month on the back of massive inflows of foreign funds that also touched record levels.

"The stock market has never had it so good. It's a kind of dream run for investors who are witnessing the share prices rising so sharply so soon," said Deepak Shah, an equity market analyst with Pranav Securities.

"The rally is mainly being led by foreign institutional investors who are pouring in massive funds into the trading ring on hopes of impressive economic and corporate earnings growth," Shah told IANS.

"While the overall market outlook is very positive in the medium to long term, in short term I expect the market to consolidate itself at this level and stage a rally after that." 

Foreign funds have collectively put in a record over $7 billion in the current calendar year so far into the Indian capital market, up from $6.5 billion worth of inflows in the corresponding period of the previous year.

A slew of overseas fund managers are looking to make their fortune in India as Asia's fourth largest economy sheds its decades of casino like stock trading practices in favour of world-class regulatory systems.

Adoption of stringent corporate governance norms by companies and easier investment guidelines are also helping foreign institutional investors to loosen their purse strings in India.

India's economy is projected to expand by 6.5 percent in the current fiscal year ending Mar 31, 2005.

Although the projections are lower than previous year's 8.2 percent growth, experts say India would continue to rank in the list of the fastest growing economies globally.

A section of dealers said signs of a patch up between the Ambani brothers, who control India's largest business conglomerate Reliance Industries, is also likely to boost the overall investor mood in the coming sessions.   

Reliance shares had gone into a freefall towards last month end after it was reported that Mukesh Ambani, chairman of Reliance Industries, had admitted to ownership rift with his younger sibling and vice chairman Anil Ambani.   

Reliance Industries, India's largest private business conglomerate with Rs.800 billion ($18 billion) in annual sales and interests in a wide spectrum of industrial sectors, accounts for a significant weightage in the overall market barometer.

In the intra-week trade ended Friday, the stock market opened for the week Monday on a sharply positive note with index rallying over two percent as investors picked up heavyweight equities.

The benchmark share market index touched an all-time closing high Tuesday on sustained large-scale domestic as well as foreign institutional inflows into the trading ring.

The index bettered its previous record high of 6,194.11 touched in January this year.

After witnessing a moderate fall Wednesday, it touched a new all-time closing high Thursday, breaching the 6,300-level for the first time in trading history, on sustained institutional investment inflows.

The market index finished in the negative zone Friday as investors rushed to pocket gains at sharply higher levels.

--Indo-Asian News Service