Mumbai, Sep 5 (TIWN) Persistent foreign capital inflows on the back of buoyant global cues as well as domestic macros are expected to further accelerate the rise of India's key stock indices in the upcoming week.

Accordingly, FPIs expect an accelerated economic recovery in India based on healthy macro numbers and monsoon rains.  They now await July industrial production figures slated to be released next Friday.  However, market observers cited high valuations along with chances of profit bookings as key factors that can cap gains and flare up volatility.  Last week, India's benchmark indices registered strong gains aided by positive global cues, encouraging macro data and FPI inflows.  Consequently, both the NSE Nifty50 and S&P BSE Sensex closed the week at record high levels.  The Sensex rose 3.6 per cent and the Nifty gained 3.7 per cent over last week, its second consecutive weekly gain and the largest in seven months.  "US payrolls data has come in much below expectations, fuelling anticipations that the US Fed will keep providing enough stimulus to revive the US economy," said Deepak Jasani, Head of Retail Research, HDFC Securities.  "This could support FPI inflows into the emerging markets, including India. Nifty could take support from 17,153 while 17,480 could act as a resistance in the near term," he added.