Most experts feel that the rally is here to stay, and is likely to get extended to broader markets as well.

Indian market staged a smart rally on Wednesday after a couple of days on consolidations which led to a breakout in Nifty50 as it breached its previous
record high of 11,760 on the upside to hit a new life high of 11761.

The S&P BSE Sensex rallied more than 200 points to hit a fresh record high of 39,266.85. More than 30 stocks on the BSE hit a fresh 52-week high which includes Bajaj Finserv, Bajaj Finance, Asian Paints, Pidilite Industries, SBI, Indian Hotels, Siemens, Varun Beverages, and Atul.

Financials led the gains on D-Street with Nifty Bank hitting yet another milestone. The index hit a record high of 30,648 led by gains in Bank of
Baroda, IndusInd Bank, Yes Bank, Kotak Bank and PNB.

But will the rally continue? Well, most experts feel that the rally is here to stay, and is likely to get extended to broader markets as well.

A huge gush of foreign money into Indian markets made the backbone of the current bull market. Foreign investors have poured in more than Rs 45,000 crore in Indian markets so far in 2019. They bought Rs 32,000 crore worth of Indian equities in March, highest so far in 2019.

The flow of money into the Indian market is largely on account of global central bankers policies as nothing fundamental has changed for Indian markets.
It is more hope-based rally, and is susceptible to collapse if it doesn’t broaden out.

At a time when both Sensex and Nifty are at record highs, only a handful names have hit fresh 52-weeks highs. At the time of writing the report, only 20
stocks on NSE hit a 52-week high while 30 stocks on the BSE recorded their fresh 52-week highs. Something which does not bode well for the bull market, suggest experts.

If we look at Small & midcap sectors both are down over 10 percent from their respective record highs which suggest that the rally is not broad-based and liquidity is chasing few stocks.

Ramesh Damani, member, BSE to CNBC-TV18

The bull market is still intact, but it is time to be a bit cautious ahead of elections. We like Rail PSU stocks which are now looking attractive at the
current level.

I would be cautious in the short-term, but long-term fundamentals are still intact. After the recent rally, we are not sure if market momentum will be as
strong closer to elections.

Markets have seen a pre-election rally. The Nifty 50 index scaled new all-time high on back of improved optimism following sustain FIIs inflow. Stable rupee and expectation of an interest rates cut have also helped the rise in the market.
source: moneycontrol.com