India's stock market could edge upwards next week, tracking global market trends bolstered by a positive outlook from the US Federal Reserve on recovery from recession, analysts said. Gains, however, could be capped by domestic concern over a below-normal monsoon and a slowdown in agriculture growth and rural spending in India. Global sentiment improved after the US Federal Reserve concluded a meeting Wednesday at which it said US economic activity is 'leveling out' and indicated it would start rolling back a portion of its massive stimulus. Sentiment domestically has improved after India's industrial output rose at its fastest pace in nearly a year-and-a-half in June, official data showed this week, in a sign that Asia's third-biggest economy is emerging from a downturn. Industrial production increased 7.8 percent from a year earlier in June, after a 2.2-percent rise in May. 'We remain bullish for the markets in the near-term and expect buying at each dip,' said Gaurang Shah, corporate clients group manager at Geojit BNP Paribas Financial Services. Traders will also track monsoon activity across the country, he said. But India's weather office said this week the monsoon, which sweeps across the subcontinent from June to September, was 29 percent below average so far this season. The rains are vital for agriculture output in India, where irrigation infrastructure is largely inadequate. For the week to August 14, the benchmark 30-share Sensex index rose 1.65 percent or 251.38 points to 15,411.63. Foreign funds have bought equities worth 7.36 billion dollars so far this year after selling shares worth 6.34 billion dollars during the same period last year. 