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The market momentum, primarily driven by relentless FPI buying, is strong enough to take the market to record highs. Bank Nifty racing to fresh highs has the potential to push the Nifty towards the all-time high of 18887. The global market construct also is favourable with resilience in the mother market US. The only joker in the pack now is the uncertainty regarding the US debt ceiling impasse.

A major bullish factor is the decline in bond yields (the 10-year below 7%) indicating that the MPC will pause in the June policy, too. Decline in CPI inflation to 4.7% and WPI inflation dipping to negative territory are good news for equity markets.
Markets will now start discounting the end of this rate hiking cycle with the possibility of rate cuts by end 2023. Therefore, rate sensitives like autos, realty and banks will continue to do well.

For long-term investors, there are contrarian value buying opportunities in leading IT names.
Remain invested in high quality stocks. At record levels some profit booking may be considered.