India's key share market index is likely to move within a close range in the coming sessions as institutional investors tighten their purse strings in the absence of any positive buying trigger.

Analysts and traders say the rising Indian rupee will also have an adverse impact on the stocks of export-driven technology companies in the coming week, putting pressure on the overall market sentiment.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed Friday at 6,451.54, representing a gain of 63.06 points or nearly one percent over its previous week's close.

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

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

"With the crucial quarterly corporate earnings season coming to an end, investors may adopt a cautious approach and wait for a fresh positive trigger to emerge," said Neeraj Deewan, an analyst with brokerage firm Quantum Securities.

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.

"The fund operators are also likely to closely track the movement on the currency front in the week ahead. A further rise in the value of the rupee will come as a major dampener for the market," added Deewan.

Indian rupee hit a new five-year high against the US dollar Wednesday on fears that China may revalue yuan soon.  

Although China's central bank said there would be no revaluation of the yuan when the country expands its foreign exchange trading system next week, speculation is rife revaluation of yuan will come soon to cool the economy.

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.  

In the intra-week trade ended Friday, the stock market opened for the week Monday on a positive note with the benchmark index rising as much as over one percent on sustained institutional buying interest in blue-chip equities.

The market index finished moderately lower Tuesday, snapping a six-day rally, with institutional investors pocketing gains in heavyweight new as well as old economy stocks at higher levels.

After extending its loss in the next session, the key index staged a moderate recovery Thursday on bargain hunting in select heavyweight new as well as old economy shares.

The market index finished a tad lower Friday, the last day of the weekly trading session, as investors dumped heavyweight technology shares following a sharp rise in the value of the rupee.

Investors fear that the sustained appreciation in the rupee against the US dollar will badly dent the earnings of the export-driven industry.

--Indo-Asian News Service