Investors, while optimistic, are not unaware of the potential risks facing the market. Yet, the market's overall sentiment has been relatively buoyant. Moneycontrol Analyst Call Tracker for March highlighted a strong preference for banking stocks, with IT stocks facing skepticism. The emphasis is on selective investment strategies.

Dalal Street ended FY24 on a high note, entering the new fiscal with little worry and much hope. Benchmark indices Nifty and Sensex, and Bank Nifty, made new highs, unperturbed by concerns of ‘froth’ flagged by SEBI. The indices ended the year very close to their respective all-time highs, amid mild bouts of volatility but none too much to spook the new breed of investors that has so far stood resilient in the market.

Now, as India Inc heads into the fourth quarter earnings season, and the country gears up for a mega general election, the market continues its winning streak, with Nifty, Sensex, and Bank Nifty hitting it out of the park.

It’s not that investors are unaware of the risks. For all the optimism in the market, there is a fair share of concerns frequently parroted by experts.

Against the robust macroeconomic growth, there is the risk of RBI’s continued hawk eye on keeping inflation in check. Against ‘Modi ki Guarantee’, there is the possibility -- however improbable it may be -- of the NDA government not making it to the tally of 350 Lok Sabha seats, especially if the voting in southern India doesn’t turn in its favor. Against a stellar infrastructure development, there is concern over rural and lower end consumption not finding its feet. Against the healthy credit offtake propping up the financial sector, there is the risk of cutbacks in US IT spending and an elongated decision-making cycle, impacting the growth prospects of Indian IT companies.

Above all, against the robust growth story India offers, there is the worry that valuations may have captured a lot of the upside, thus limiting future gains in stock prices.

For now, though, the market seems to be taking these risks lightly.

But Grow Mudra’s Analyst Call Tracker for March gives a sense of the collective wisdom of markets is playing out at a stock-specific level.

The list of stocks with maximum optimism or maximum ‘buy’ calls continues to be dominated by banks. At the other end are IT companies, topping the list of maximum pessimism or maximum ‘sell’ calls.

Cement, metals, and conglomerate stocks feature prominently among those that got the most analyst upgrades. Consumer sector stocks are among those that were downgraded.

However, with the pace at which markets are growing -- riding partly on the unstoppable money flow from retail SIPs -- the fear of missing out on the rally seems to be far bigger.

The domestic retail participation in equity markets has ballooned, with India now having as many as 15 crore demat accounts. Domestic institutions pumped in Rs 45,000 crore into the equity markets in the fiscal year gone by; and seem to be perfectly balancing out any intermittent FII outflows. FIIs themselves infused over Rs 2 lakh crore into Indian markets during the year.

Who will be in the driver’s seat in the current fiscal will be known only in hindsight, but what is clear is it’s time to be selective.