Mumbai, Sep 24 Equity market today had a historical day with Sensex touching 60,000 for the first time driven by large caps with many index heavyweights touching new highs. It has gone very well with the people in the Dalal Street and they are quite bullish on the market. Even they agree that the market may have its intermittent volatility in its way in future.

"The rally in domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling Covid-19 cases, upbeat corporate commentaries and low cost of capital. Amid the buoyant sentiment and increased activity, valuations has reached elevated levels and demand consistent delivery on earnings expectations. Given rich valuations, one cannot ignore intermittent

volatility – however we expect the positive momentum to continue on the back of improving economic activity and recovery in corporate earnings," says Motilal Oswal, MD & CEO, Motilal Oswal Financial Services.

Analysts are of the view that a dip by couple of percentage points should be the right time for the investors to enter.

Brijesh Bhatia-Senior Research Analyst at Equitymaster, said,"A dip of a couple of percent would be a good opportunity for traders and investors to enter. We are witnessing broad based buying from largecaps to midcaps, and smallcaps. The euphoria in the market is likely to continue. It may extend till January-February 2022. Though the volatility is likely to witness an uptick."

Bhatia believes that the stocks ranking higher terms of outperformance will continue to shine. But traders and investors need to keep in mind the margin of safety in these stocks because their support levels are very deep"

According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, "It's a big achievement for India that India's most sensitive index crossed the mark of 60k. Especially, when the uncertainties are mounting in the world markets such type of performance is remarkable. To date, it is backed by DIIs buying in the equities but now fresh interest from FIIS is pulling the market upward. In the coming month, the news flow on the corporate earnings would also help the market to rally further. Investors are reluctant to invest and also to take profit whenever we see such type of uninterrupted rally in the market."

Even at 60k our advice for investors is to buy in select stocks (strong companies in terms of managing and growing companies) with a medium to long term view. Most of the time in the market it is proved that the level of the index is just a number and the actual market index is very different from the numbers. However, the buying is advisable in tranches/parts, do not lock your entire funds at current levels, he added.

Experts are of the firm belief that while corrections will keep happening, market will not crash.

"With every new level being reached, there is always a fear in the minds of investors whether this is the top or there is more room to grow. The markets are moving because of liquidity flow from domestic and foreign investors as well," said market expert Arun Kejriwal.

The expectation of post recovery from Covid is not only strong, but will shortly overtake pre-Covid level. Finally, the cost cutting initiatives taken by corporates during pre-Covid level could be yielding for better results than expected, he added.