Stay Calm & Carry On: Market Veterans Urge Caution As Nifty, Sensex Hit All Time High

The Nifty's all-time high of 26,295.55 on Thursday has triggered a wave of cautious optimism across Dalal Street, with top market voices urging investors to celebrate the milestone but keep expectations measured.

Ajay Srivastava, the managing director of Dimensions Consulting, summed up the mood bluntly: "I feel relieved. That's the only word that comes to mind because this has been a very, very bad year for all of us. It's not because India has performed poorly, but because everyone else has performed so well."

Pointing to the rally unfolding despite already-high valuations, Srivastava warned against excess exuberance. "Temper enthusiasm, celebrate today, but this is not a champagne-popping event as one year is a big wait for us," he said.

Saurabh Mukherjea, the founder & CEO of Marcellus Investment, struck a more forward-looking tone, noting that a combination of a strong December quarter, possible RBI rate cuts, and a potential US–India FTA could act as powerful catalysts. But he too echoed caution.

"Temper enthusiasm as across the world most markets are hitting all-time highs. After an 18-month gap, India is participating in the global equity rally. We’ve fallen behind for the best part of two years," he said.

From a sectoral standpoint, Manish Sonthalia, CIO, Emkay Investment Managers, believes banks stand out as the best positioned in the current uptrend.

"Banks are most favourably placed. Bulk of the Nifty 50 is based in IT and banks, and both are reasonably placed," he said, adding that valuations in the midcap and smallcap space are largely aligned with the broader market. With not everything cheap even within largecaps, he calls it a market where stock picking will determine outcomes.

A record high for the Nifty: yes. A reason to let guards down? Definitely not, if India's top fund managers have anything to say about it.