India's market rally is set to continue its rally despite the momentum peaking in the shorter term, according to experts.
In the short term, the market has seen its momentum peaking, so for traders and short-term players, it will be a momentum peak, said technical analyst CK Narayan. "But if you expand the time frame, what we have is history on our side, for the continuation of the momentum."
From the launch of Sensex, December has always been a positive yielding month, Narayan said. "December returns are usually twice that of the average monthly returns of any year. December ahead of an election year is always a big return month sometimes. It goes up to even as high as 5-6%."
There is far too much money chasing stocks, and so, collectively the momentum should continue, he said.
This year, there is a lot of interest in investing in India, especially from new investors, according to Piper Serica Pvt. Founder Abhay Agarwal.
"Investors are seeking investment ideas for 5 to 10 year tenure," and have gone away with the idea of short-term investments, Agarwal said.
From an investor perspective, international investors are trying to back the India story through growth stocks, and are not looking for low price-to-earnings stocks alone, Agarwal noted.
Investors are no longer looking at India becoming the next China, and are focused on the continuation of tax policies, domestic market, India being among the manufacturing and export hubs, according to him.
"Defence, and railways will be the mega themes, and we will put them back in tracker," Agarwal said.
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