Indian equities are likely to enter into a consolidation phase in the week ahead as operators adopt a cautious approach after the hectic buying activity of the past week that took the key index sharply higher.

Analysts and market traders say while overall market fundamentals continue to be positive, the sluggish overseas investments pattern in the domestic trading ring will put roadblocks in the way of a sustained rally.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed Friday at 6,388.48 points, representing a gain of 234.04 points or 3.8 percent over its previous session's close.

The market closed in the positive zone for the week, after slipping lower in the previous week, as institutional investors picked up new as well as old economy shares at attractively lower levels.

The market index is trading at over eight percent lower from its all time high of 6,954.86 touched on March 9, 2005.

"The market rose sharply higher in the last few sessions on the back of a host of favourable developments on the domestic as well as international fronts," said Deepak Shah, a senior analyst with Pranav Securities.

"After the sharp rally, some amount of consolidation is due now. The fund investors will wait for some fresh trigger to emerge before pouring more money into the trading ring," added Shah.

"In the short-term, the market will consolidate around the 6,150-6,200 level. Stock specific institutional buying activity will, however, continue unabated in the days ahead."

According to Shah, the unveiling of quarterly financial numbers by heavyweight companies like Tata Motors will also influence the trading pattern in the days ahead.

India's January-March quarterly corporate financial earnings season started in the first week of April and a host of new as well as old economy companies unveiled their financial report cards in the last few weeks.

Investors closely track financial reports and earnings projections of heavyweight companies and respective industry leaders such as Reliance Industries and Infosys Technologies to firm up their investment decisions.

Dealers say the stock market index movement in the coming sessions will also depend on the flow of foreign institutional investments into the domestic trading ring.

Foreign institutional investments, which act as the backbone of the liquidity-starved Indian share market, sold $150 million worth of shares in April as against an investment of $1.7 billion in the previous month of this year.

In the first week of the current month, the overseas investors have invested a meagre $8 million.

"The negative approach adopted by the overseas fund operators comes as a major dampener for the local investors. The market is not getting any support from bulk buyers," said a broker with the Bombay Stock Exchange.

In the intra-week trade ended Friday, the stock market opened for the week on a positive note and kept surging higher all through the trading sessions on sustained institutional buying interest.

The market mood was boosted by the US Federal Reserve's decision to raise interest rate with a view to rain in inflation.

The government's approval to a proposal to remove a 10 percent ceiling on voting rights for non-founding shareholders with a view to facilitate consolidation in the sector also enthused investors.