For all those dealing on the BSE today, July 13 will be another landmark. The benchmark Sensex touched 32000, and by 1:17 PM was still in the green by 239.19 points or a 0.75% lead from the day opening of 31896.23.

There is little to wonder why the Sensex raced off to a new high.

Deepak Jasani, Head-Retail Research at HDFC Securities thinks that the Sensex touched the 32000 psychological mark aided by expectations of a rate cut, especially post the low CPI and IIP numbers announced on 12 July coupled with good monsoons and overcoming the fears of disruption due to introduction of GST.

"The latest 1000 point rally in the Sensex was driven by Reliance, large Pharma stocks, Bharti Airtel, ITC and Maruti. Unlike in the past, Banks & IT stocks did not contribute meaningfully to the latest rise. Local fund and non-fund inflows contributed to this rise," he said.

The rise in the markets has been aided by the risk-on sentiments prevailing across the globe. Valuations look stretched going by historical parameters; however some more upside is possible in the coming few weeks.

Jasani advises that retail investors may use this rise to re-weight their broad asset allocation, re-look at the stocks that they own and clean/shrink their bulging portfolios of stocks.

He concedes, "They may avoid chasing stocks that are at steep valuations but keep hunting for opportunities in the small/midcap space where promoters show genuine interest in improving shareholder value by restructuring their businesses/companies. For investors who are under-invested in stocks, SIP in select equity stocks may be looked at".