What to buy with D-St at lifetime high? Keep good company, go for largecap stocks

The Sensex has recently hit a new high, raising the question of whether investors should wait for a correction. According to veteran investor Peter Lynch, trying to time the market for corrections often leads to more losses than gains. Looking back, previous milestones like 50,000 and 75,000 have proven to be buying opportunities, with investors earning double-digit returns even at earlier ‘record high’ levels.

Apurva Sheth from Samco Securities points out that the market has consistently reached new all-time highs every year for the past 8 years. Waiting for the perfect opportunity may cause investors to miss out on potential gains. Despite the recent 10,000-point rise from 70,000 to 80,000 representing a 14.4% increase, continuing to invest regardless of new highs is considered a wise strategy.

When it comes to investment choices, Virendra Somwanshi of Bank of Baroda suggests that large caps currently offer more favorable valuations compared to mid and small-caps. He recommends a flexi-cap strategy with a large-cap bias, while still tactically allocating to mid and small-caps. It’s important to consider not just stock prices but also their valuation in relation to future earnings.

DailyBubble’s perspective is that efficiently managed companies tend to outperform the market, especially in a growing economy. Global support for the rally is evident, with the S&P 500 outperforming the Sensex this year. V K Vijayakumar from Geojit Financial Services highlights the fundamental support behind the rally, including the potential for above 7% GDP growth in FY25 and impressive corporate earnings growth.

Despite the positive outlook, Vijayakumar warns of risks such as high valuations in the broader market and the potential for a trade war between the US and China if Donald Trump returns as US President. DailyBubble advises investors to consider these risks while staying informed and maintaining a long-term investment horizon.