Markets closed the holiday-shortened week on a flat note. A positive start was supported by strong FII inflows and better-than-expected manufacturing PMI and GST collections. However, concerns arose over potential funds outflow from the merged entity due to the MSCI rejig, leading to a sharp sell-off in the HDFC twins post weekly expiry. This resulted in a flat close for the week. In the week ahead, investors will be watching inflation data from India and the US, upcoming earnings announcements, and the outcome of the Karnataka elections to gauge market direction.