The BSE Sensex's crossing of the 80,000 mark in June 2024 was celebrated on trading floors from Mumbai to Dubai. Foreign institutional investors poured in nearly ₹1.2 lakh crore in the first half of the year, drawn by India's relative macroeconomic stability at a time when China's property sector continued to drag on sentiment.

Yet not everyone is sanguine. The Nifty 50's price-to-earnings ratio touched 23x forward earnings — a premium to the 10-year average of around 18x. "Markets are pricing in a lot of good news," cautioned Nilesh Shah, managing director of Kotak Mahindra Asset Management. "Any disappointment on earnings or on the political front could trigger a sharp correction."

Retail participation has surged, with SIP inflows crossing ₹20,000 crore a month. Financial planners urge investors to stick to asset-allocation targets rather than chasing momentum.