Bull Market Should Last Another Year At Least, Says CK Narayan

Narayan explained that the domestic institutions had been strong buyers because of the large influx of retail investors with systematic investment plans leading the trend.

The FPIs find Indian markets expensive, but are willing to take risks and divert funds towards broader markets beyond large-cap index stocks where they may still find value. These factors are likely to take Indian markets gradually higher and keep it from seeing any deep decline, according to Narayan.

"The current rise (in stock prices) has not yet been enough to create any kind of euphoria. We are still in the throes of a bull market, which should run about for a year at least," Narayan said.

Narayan is bullish on the real estate sector, and said realty indices have seen the sharpest rallies since they peaked in 2007–2008.

"After 10–13 years of consolidation, the realty sector is set to make a comeback," he said. "The sector is now a spring that coiled back, which has been released and we are likely to see a 5 to 10-year bull run in realty."