US jobs monthly data which came in better but the markets reacted differently, will also set the tone for global markets.
Foreign flows would remain on watch as overseas investors have been heavy buyers of Indian shares, adding $119.11 million worth of cash shares on Thursday, and bringing the total since February end to nearly $3.5 billion.
Also, India will release monthly industrial output data for February on April 11 around 5.30 p.m. (1200 GMT).
The rupee's recent rally to an 8-month high could be capped as the (RBI) is expected to step up dollar purchases whenever the currency strengthens above 60 to the dollar.This may not work all the time and rbi may allow it to drift to 59 levels before coming in.
Heavy foreign fund inflows had sent the rupee to as high as 59.5950 on April 2 - its strongest since July 30 - although the currency retreated towards the end of the week.Latest data showed foreign exchange reserves rose by $5.04 billion to $303.67 billion in the week to March 28.
However, shares could start to weaken with caution setting in as India kicks off a five-week election process on Monday.
Sentiment for debt markets is much weaker, however, with benchmark 10-year bond posting their biggest weekly losses since the week ended on November 8.
Caution remains as India has resumed weekly debt auctions at a time when the RBI is seen as reluctant to buy bonds via OMOs, which in the past had helped markets absorb the supply.
Benchmark 10-year bond yield are seen trading in a 8.95-9.10 percent range after on Friday rising to as
high as 9.07, its highest since December 6.
But at the end of the day it will be the Fii's who will decide where this market will go to, and they have not stopped buying as yet.