Chart: India tops MSCI indices in 2012, will the party last?

June was was a relief for Indian equities as the benchmark indices gained 7-8 percent. With institutional investors pouring in $236 million, the BSE Sensex crossed 17,000. The market capitalisation of the 30 constituents of the Sensex gained 1.17 lakh crore to 61.52 lakh crore during the month.

According to a report by Espirito Santo Investment, Indian indices were the best performing among the MSCI Indices in 2012 so far. Indian equities have risen 13.1 percent followed by the US (8.3 percent) and Poland (6 percent). Brazil, with a fall of 9.5 percent, was the worst performer.

So, will the party continue? According to VK Sharma, head - private broking and wealth management, HDFC Securities, the market is not in a mood to drift lower and that there are indications that the Nifty is waiting for a big upside almost of a 100-150 points.He expects the Nifty to break the level of 5,630.

“So from that perspective the small moves that the Nifty has made in the last 3-4 sessions this week gives you an indication that probably the markets are waiting for a big upside almost of a 100-150 points immediately,” he told CNBC-TV18.

“That could come by way of some better data in the US today or after the presidential elections. We are on a strong footing and I see the Nifty breaking the level of 5,630 that we have seen earlier,” he said.

Even Punita Kumar Sinha, Managing Partner, Pacific Paradigm Advisors, feels the Nifty could touch 5,600.

The key event that investors will watch out for is the earnings season as that will have an impact on the markets.