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The markets have been on a high for the past few sessions, particularly the Nifty, which consistently touched and even crossed the 18,000 mark earlier this week.

The Reserve Bank of India (RBI) earlier this month decided to maintain a pause on key policy rates for the second time in a row.

While in April when the RBI had first paused the repo rates, real estate firms' shares had enjoyed good growth, mainly owing to positive sentiments among homebuyers, as the decision meant EMIs would not be raised.

But when the central bank decided to maintain a pause on the key rates this month again, no such enthusiasm was visible in real estate shares.

If experts are to be believed, there was nothing unusual in the bourses touching new highs as RBI's decision was already factored in by markets.

Ashu Madan, managing director of JM Financial Services Ltd said: "There was no surprise element in the recent jump seen in stock markets, as it was on expected lines since global rates are on a pause."

He added that there was no quantitative easing and there were no liquidity issues, therefore the RBI's decision to hold rates did not lead to the bull run in the markets.

"Some things are normal and markets discount these developments (rate pause by RBI) in advance. Such factors are pre-empted," Madan further said.

He, in fact, went on to say that markets should consolidate now, after touching highs.

Emphasising on the reasons behind bourses touching highs, Madan said that this phenomenon has occurred as people have become bullish about quick returns through investments in stocks.

He noted that post Covid, people started investing in stocks and engaged in short term benefits for quick profits.

Foreign institutional investors or FIIs too have a role to play in markets reaching new highs, as they are now buying, Madan said.

Also since derivatives and auction have arrived, investors have become traders and are focussing on short term gains, market watchers observed.

Madan on his part said that while real estate stocks rose in April due to growth in sector, in the coming days, metals and IT sector stocks should consolidate.