Indian equity markets traded with much optimism before the biggest announcement of the year – Union Budget 2018. The key benchmark indices showed strong momentum even as the concerns on valuation remained. 

Sensex managed to make record highs this week and touched its all-time high at 34,963.69 on Monday.

Small-Caps Cheer Growth Investors! The global markets, after hitting their record highs, are showing some signs of fatigue. However, Indian markets have shown some relative strength in the past couple of weeks, with broader markets outperforming the major benchmark indices. 

Sensex is on a roll, and after hitting its record high on Wednesday, it has managed to send a strong message to the short sellers — market is in no mood to give up its gains. Sensex made record highs on Wednesday at 33,956 level.

Indian markets are in consolidation mode and are waiting for the outcome of Gujarat elections. Now that the RBI has kept the interest rate unchanged, markets will look forward to the development in the global markets. The RBI statement seems to be more balanced this time around than the one in October where the central bank appeared to be concerned about inflation.

Global market showed signs of weakness in the past couple of weeks, with majority of the indices sliding down owing to political turmoil in Europe and rising crude oil prices. The crude oil prices corrected marginally after a sharp rally took the Brent crude oil prices to $65 per barrel.

Indian equity markets, in line with the global markets, have managed to touch record high levels this week. Indian markets have in fact outperformed other emerging markets as the Q2 earnings have broadly met the street expectations and the macroeconomic indicators have stabilised.

Sensex touched its lifetime high of 32,699 on October 17 on the auspicious day of Dhanteras, just couple of days before the Mahurat trading session.  Major benchmark indices are showing all signs of climbing new highs in the coming days

The synchronous growth in both the developing world and the developed world is expected to boost the demand in the world economy, thus benefitting export sector in countries like India. With the world economy in the right shape and flush with liquidity, the equity markets can inch up further from the current levels based on improving fundamentals.