The Nifty 50 index hit an all-time high in Wednesday’s trading session surpassing the 19,000-mark. The index crossed its previous record high of 18,887.6 on December 1 last year. Since then, it has taken 142 trading sessions for the index to hit a new record high.

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Experts say India stands out in a slowing world and a weakened China. "Manufacturers as well as investors are looking for alternatives to China and presently, India is the best bet in all of Asia", said Amar Ambani, Group President & Head - Institutional Equities, YES Securities. He added that Foreign Portfolio Investment (FPI) money should keep flowing into India, with expected stable yields and healthy Rupee outlook.

But not just strong fundamentals, valuations are also supportive for investors to consider Indian equities. "Valuations around the long-term average makes a strong case for reasonable returns as earnings upcycle gains strength", said Christy Mathai, Fund Manager at Quantum AMC.

Santosh Pandey, President and Head, Nuvama professional clients group in an interaction with CNBC-TV18 on June 28, said he expects markets to head higher from current levels and has a Nifty target of 21,000 by end of this year. Some of the reasons supporting the rally are improving corporate profits, positive management commentary on outlook, strong government capex, lower inflation and strong retail participation in equities.

Pandey added that this is a good time for investors to do profit booking and reinvest their money in high quality stocks. He is cautious on some consumer stocks which are trading at extremely high valuations. The preferred sectors for Nuvama are manufacturing and capex driven like banking, real estate, hotels and selective mid caps. These include Ador Weilding, Astra Microwave, ICICI bank, Axis bank, DLF, Brigade Enterprises and Royal Orchid.

First Published:Jun 28, 2023 4:08 PM IST