The blue-chip Nifty index has rallied around 500 points or nearly 7 per cent, while the BSE Sensex gained 1,650 points since the announcement of the Union Budget on February 29.
Beaten down domestic markets rebounded sharply as Finance Minister Arun Jaitley's third Budget did not have negative surprises as far as fiscal deficit and taxes are concerned, traders said. The resumption of buying by foreign investors post Budget led to hopes that markets may see a sustained rally in the coming months.
However, one of Asia's biggest brokerage - CLSA - termed the upmove in domestic markets as a "kickback" rally. Citing lacklustre volumes, it asked investors to "sell" domestic equities.
"Nifty has created a short-term bullish pattern. The breakout supports upside target of 7,695. The Nifty can best rally till 200-day moving average," CLSA said.
In another setback for domestic investors, global investment bank Credit Suisse turned "bearish" on India, citing "unjustifiable premiums".
According to Credit Suisse, India's corporate earnings revisions are most negative across emerging markets.
The investment bank said it preferred Brazil vis-a-vis India as the South American country will benefit from the reversal of five-year weakness in commodity prices.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
