Avoid going overweight on equities, especially hot themes and sectors

Also refrain from exiting the market in the hope of re-entering at a lower valuation

The Indian equity market is currently witnessing a strong upswing.

CLSA’s proprietary Bull-Bear Index is showing a sharp improvement in investor sentiment: from the extreme bearishness of 8.2 per cent in the middle of March 2023, it has soared to an extremely bullish reading of 95.9 per cent.

Retail investors need to maintain a cool head in a market that could heat up further.

Start of a bull run?

Some analysts are of the opinion that the Indian market is on the threshold of an extended bull phase.

“Following an annual growth rate of less than 6 per cent from