FIIs likely to keep market buoyant: analysts

Dalal Street is likely to witness a positive trend this week as foreign fund flows are expected to continue in the domestic market, amid favourable global cues, analysts say.

"The activity of the foreign institutional investors is not likely to dry up in a hurry in the Indian equity market. FII flow is likely to keep the market buoyant this week," Unicon Financial Intermediaries CEO G Nagpal said.

Marketmen said the month of May has turned out to be the golden month in terms of FII investment so far in 2009.

May witnessed inflows worth Rs 20,117 crore ($4.1 billion) in the Indian stock market, accounting for nearly 99 per cent of the total FII investment so far this year.

"With the weakening of dollar, FIIs are bringing money to the emerging economies leading to a surge in equity market," SMC Global Vice President Rajesh Jain said.

The Bombay Stock Exchange benchmark Sensex recorded gains for 12th straight week ending on Friday, and surged over 5.31 per cent last week to close at 14,625.25 points.

Marketmen, however, opined that with the Sensex embarking on the 13th week of gain there might be a slight correction as prices have run ahead of fundamentals.

"Markets are right now overbought and investors should trade with caution. Although global cues are positive, a normal correction is expected as our market has gone up more than its global peers," Jain noted.