NEW DELHI: Both S&P BSE Sensex and Nifty made fresh highs today, surging nearly 2 per cent each in trade on Friday. The 30-share index ended the day at 27,865.83, up 519.50 points, or 1.90 per cent. The Nifty shut shop at 8322.20, up 153 points, or 1.87 per cent.



The Sensex hit its fresh lifetime high of 27,894.32 in intraday trade, while the 50-share Nifty index rose over 150 points to make its all-time high of 8,330.75.



Strong macro environment, reform push by the new government and falling inflation have already boosted the Sensex by over 30 per cent so far in the year 2014. But analysts at Dalal Street see further upside in the index up to the levels of 30,000 by the December-end and over 35,000 in the next one year.



Analysts at top brokerage firms firmly believe that we are in a bull market and equities will remain the best asset class in the next couple of years, provided global markets remain stable.



The markets have been on an upward trajectory since the last few days on the back of renewed vigor shown by the government to initiate reforms, apart from lower crude prices, lower inflation, supportive global cues and decent earnings, say experts.



Vikas Khemani of Edelweiss Financial Services believes that from the medium to long-term perspective, India remains one of the best markets to be in and equity remains one of the best asset classes to be invested into.



Expectations are running high given the fact that macros have stabalised and growth has bottomed out. And with the rate cycle set to reverse and more reforms gets implemented, the Indian markets may well be on top of the list of FIIs despite global concerns.



Though the quantitative easing ended on Wednesday, but the Federal Reserve is keeping the ‘considerable period of time’ stance for raising interest rates until it sees more improvement in the economy, which cheered the markets.



“Taking cues from the same, the BSE Sensex and the Nifty hit fresh highs and we are expecting further upside from the current levels as this move of the Fed has surely boosted the confidence of retail as well as global investors,” said Vivek Gupta,CMT - Director Research, CapitalVia Global Research Limited.



“As the Nifty is further looking bullish on charts and fundamentals also seem to be supportive, slight correction might be on the way. But the overall upswing is likely to occur till Nov expiry. Our targets for the Nifty till December are 8400 & 8700 and for the Sensex, 30000 can be the golden figure,” he added.



The slowdown in growth rates has dampened the sentiment quite a bit not just for Indian markets, but across the globe. But one thing which experts feel very firmly is the fact that India happens to be in a sweet spot and the whole India story remains intact.



India has managed to hold onto its macro factors compared with the rest of the emerging market economies and that will aide capital flow. They have also managed to push through key economic reforms.



After the recent diesel price deregulation, the government on Wednesday eased overseas investment rules in construction to attract money into the funds-starved sector and serve its twin objectives of faster job creation and housing for all.



“Economic indicators such as inflation, factory output, crude oil and other commodity prices are reflecting favorable numbers, which would further keep the market at comfortable levels in the coming month,” said Tushar Pendharkar, Equity Strategist, Right Horizons.



Most analysts see the index hitting the levels above 30000-35000 in the next one year, which gives an upside of 10-28 per cent from the current levels. However, it will not be easy for the Indian markets to maintain the momentum considering the fact that the US might just increase rates amid global economic slowdown.



“India would be very unlikely impacted by the Fed decision in the near term. However, I believe that the Indian economy would be inversely proportional to domestic inflation and international crude oil prices, but in both the cases the trend is under control and outlook looks positive for the economy,” adds Pendharkar.



But brokers are hopeful for a smart rally on the bourses. According to a survey conducted by ET, the Sensex is on track to hit levels above 30000-35000 by next Diwali or by the end of next one year, while the 50-share Nifty index could record levels of 8500 in the next 12 months.



According to an ET Now survey of 15 brokerage firms, 80 per cent of the respondents surveyed see the Nifty index trading above 8500 levels by next Diwali, while 13 per cent see the index hovering in the range of 8000-8500. Only 7 per cent of the respondents see the index moving in the range of 7500-8000.



According to the survey, 33 per cent of respondents are of the view that the Sensex could see the levels above 35000 by next Diwali, while 50 per cent see the index trading in the range of 30000-35000. Only 17 per cent of the respondents see the index hovering in the range of 26000-30000.