Nifty 50 up 18% year-to-date, gains 9% in last two months

The equity market is witnessing strong buying interest from domestic as well as foreign investors on the robust economic outlook, steady decline in US treasury yields and expectations of interest rates to come down soon.

Equity benchmarks Nifty 50 and Sensex are at their all-time high levels. Nifty 50 has jumped over 18 per cent this year so far. In the last two months alone, the index has gained about 9 per cent.

Experts point out that despite the prevailing sluggishness in the global economy, there are notable positive indicators within India's macroeconomic landscape.

The growth outlook appears vibrant, inflation is well within the target band, and the bond market is exhibiting stability. Moreover, the outcome of recent state elections is signalling a mandate for a stable government after the General Elections 2024. This reinforces the likelihood of policy continuity and a favourable trajectory.

The critical decision now lies in determining where to place one's bets—whether on large caps, mid caps, or small caps.