And you thought that ‘Acche Din’ was only limited to Indian market which has risen over 20 percent in dollar terms to hit fresh record highs so far in the year 2017.

Indian markets moved in one direction from the start of the year 2017 to hit fresh record highs earlier this month. But, the rally is spread across the globe and not just limited to India, data showed.

Global liquidity which has been a prominent factor in pushing Indian market played a key role along with domestic liquidity to push the market into uncharted territory.

There are many factors which could be driving a rally in Indian equity markets such as strong GDP growth, stable political outlook, lower inflation, expectations of a rate cut, pro-growth reform process such as GST, NPA etc., forecast of good monsoons, and strong rupee among others.

Foreign institutional investors poured in over Rs 40,000 crore in Indian equity markets so far in the year 2017. They were net buyers of Indian equities in 3 out of past 5 months.

“The global rally has been largely liquidity driven which has led to a steady market performance despite the geopolitical issues and sluggish macroeconomic conditions,” Prasanth Prabhakaran, Sr. President and CEO, YES Securities (I) Ltd told Moneycontrol.

“However, one point to remember is that liquidity conditions have been high since the times of US quantitative easing program. Since then high liquidity conditions have prevailed in the global markets leading to a run up in prices across asset classes including equities,” he said.

While the performance has been impressive, it is also interesting to note that stock markets world over have also been witnessing impressive rally which makes us question the strong rally in 2017 after a flat the market closed flat in the calendar year 2016.

Movement in stock indices for 33 countries has been presented in the table below which looks at changes for the five month period December end 2016 to May end 2017, CARE Ratings said in a report on Friday.

The median value of the change in stock market indices was 14.9 percent. 5 countries witnessed changes of above 20 percent: Poland (up 30 percent), Argentina (up 29.6 percent), South Korea (up 25 percent), Turkey (up 24.2 percent) and India (up 23 percent) while 11 had changes of between 15-20 percent. Stock indices had declined in Canada and Russia, added the report.

“Therefore, what is being witnessed in India is not quite singular and is being observed in a large number of countries,” said the report.

The rally has been impressive throughout the world largely on two accounts – global liquidity and many external risks which could have turned the rally upside down have been digested well by the markets.

The victory of Mr Macron has sent positive sentiment across the euro region. The same holds for the regional elections victories for Ms Merkel said the CARE Rating report.

Central banks like the ECB appear to still be in an accommodative stance. Oil shows signs of recovering after the recent OPEC meeting – and is expected to stabilise. US antipathy to the Paris Accord would mean going back to fossil fuel which will increase the price of oil.

There are more positive than negatives for Indian markets right now and it is still a good buy on dips market. Investors should not hesitate to put money even at current levels or on dips.

“The global equity market is on a roll and been mainly led by emerging countries. With lower oil prices and better growth prospects - liquidity has been chasing returns,” Siddhartha Khemka, Head – Equity Research (Wealth) at Centrum Broking Limited told Moneycontrol.

“This is where India stands out from the rest – we have a robust domestic demand, the expectation of good monsoon this year, political stability at the centre and major reforms being carried out (GST being one of them),” he said. The long term performance should continue to be in favour of India as the fundamental factors are expected to remain positive.