Indian shares are trading near their all-time highs, with the benchmark Sensex now less than 1 percent away from its record high.

The stellar gains are likely to continue going ahead despite global trade war worries. Deutsche Bank India has a target of 37,000 for Sensex and 11,400 for Nifty for 2018.

The current state of trade war between the US and China will unlikely result in huge outflows from India, according to the global investment bank.

"India seems to be relatively insulated in this scenario of US-China trade war and so the outflows from India may not be as significant", Pratik Gupta, head of equities at Deutsche Bank India told CNBC-TV18 on Wednesday.

Gupta is of the view that the downside for India market will more likely be caused by events such as oil supply disruptions.

“Deutsche Bank's forecast is that oil in the second half will average around $80 per barrel and in that environment it is difficult for India which is a current account deficit country to attract EM inflows,” Gupta said.

With regards to the stocks market, Gupta doesn't expect any major "market crash" as India still remains a structurally preferred market for overseas investors.

According to him, the domestic risk-capital flows will also continue to come into equities, so the market will at best see a 3-4 percent correction.

Gupta prefers companies in IT services, which have large exposure to the US.