Significant buying of stocks by foreign investors, especially in the past two months, is keeping the stock markets in a bullish mood, with many predicting equities to be the best asset class in the current financial year (FY18). After crossing the psychological level of 30,000 levels on 5 March, the benchmark index of the Bombay Stock Exchange (the Sensex) is still holding steady at 29,706 levels (Friday’s close) even as geo-political tensions, triggered by the US missile attack on Syria, grips markets across the globe. Though corporate earnings are yet to show visible improvement on the ground, the current uptrend shows the positive belief that foreign investors are placing on India’s growth story. Since the beginning of March this year, foreign investors have poured in over Rs 70,000 crore in the India equity and debt markets, a momentum that many feel would continue as India seems well placed on macros such as (lower) inflation and well-controlled fiscal and current account deficits. “The investment community is significantly bullish on equities with the strong belief that equity will be the best asset class with mean returns between 10-15% in FY18,” says Jayesh Gandhi, President CFA Society India. Market experts agree that it is sentiments driven rally, aided by the tailwinds of macro-economic factors such as the stronger rupee and the expectations that the reform oriented government would continue to be in office well past 2019. .