Market ends higher for 5th day, ONGC, Tata Steel gain but Divis Lab crashes

The most pleasant aspect, that Mehta noted is the positive fund flows, which are coming from Foreign Institutional Investors.

“Right through the last several months, FIIs have been continuously selling and billions of dollars have been sold and yet the market is pretty much in its zone. It has not completely collapsed and now we are just seeing some marginal buying coming in from them. And Nifty has rallied by about 1000 plus points, and Sensex by beyond 3000 points or so,” he said.

So he is of the view that if the market sees more fund inflows from foreign portfolio investors, then this market can certainly scale to higher levels just on account of liquidity, and many people waiting in the sidelines with cash in their portfolio or short positions are going to feel the pain in their investment portfolios and trading positions.

Key indices in Europe were trading higher while MSCI’s broadest gauge Asia Pacific ex-Japan was up 0.3 percent.

Investors scaled back views on how far US interest rates and inflation can climb, while oil recouped some of the previous week's losses.

A slight easing of inflation readings drove global stocks higher and capped a rising dollar this week, though a string of US Federal Reserve speakers dampened expectations of the central bank going slow on further policy tightening.

S&P futures were trading 0.4 percent higher indicating a positive start for the Wall Street.