Chennai, Nov 28 : The Indian stock markets flared up on Monday with the Sensex of BSE and Nifty of NSE touching record highs. The Sensex of BSE on Monday touched a record high of 62,701.40 points after opening at 62,016.35 points and touched a low of 61,959.74 points during the day. After coming below the 62,000 points, the Sensex rallied up to cross again that milestone and later came down. The Sensex finally closed at 62,504.80 up by 211.16 points over the previous close of 62,293.64. The Sensex's earlier all-time high was 62,245.43 which was on 19.10.2021, as per BSE. At the NSE, the Nifty opened 18,430.55 points after previously closing at 18,512.75 points. Then the Nifty rallied up to 18,614.25 points and touched a low of 18,365.60 points and finally closed at 18,562.75 points. Ajay Menon MD & CEO, Broking & Distribution, Motilal Oswal Financial Services Ltd said: "Nifty today touched its all-time high after its recent rally of more than 10 per cent over the last two month. Strong domestic macros, robust earnings growth and sharp correction in oil prices is a big positive for Indian equities. For Q2FY23, Nifty companies grew by 9 per cent as compared to expectations of flattish growth. Excluding the global commodities, the growth stood out strong at 33 per cent. "Going ahead too, we expect the momentum to remain strong with expectation of Nifty earnings CAGR of 17 per cent over next two years. The oil prices have corrected by 15 per cent and fallen to just above $80bbl which is positive for our oil import dependent economy. Even the wholesale and the retail inflation has cooled off and is showing signs of peaking out. "Now with the Fed's commentary on slowing down the pace of rate hike has given a boost to the global sentiments which along with strong domestic fundamentals is proving to be a boom for the Indian equities. At the same time, the festive season this year witnessed a buoyant demand -- being the first one without any restrictions post two years of Covid. The buoyancy in demand is expected to continue with the onset of marriage season. "Apart from this the bank credit continues to grow in late teens over the last few months and is expected to continue this uptrend with the pickup in capex from H2. India is entering a big capex upcycle which would provide a leg-up to the overall economy." Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, said: "The markets touched all-time high thanks to the systematic investment plan (SIP) flows. Investors should maintain their asset allocation and SIP investment with a long term outlook. Near term volatility should not deter investors from following their asset allocation." Be that as it may, Morgan Stanley in its 2023 India Equity Strategy Outlook a report on Monday said: "An up-trending profit cycle, a likely peak in short rates in 1Q2023 and ebbing global macro risks relative to 2022 make the case for absolute upside to Indian stocks. That said, India's relative gains may take a breather in 2023." At the helm of India's outperformance has been government policy, including a structural rise in the domestic equity saving pool,a boost to corporate profit share in GDP (gross domestic product) and a focus on FDI (foreign direct investment) flows, which raised the share of FDI in BoP (balance of payments), allowing India to run monetary policy that is less sensitive to the US Fed, and reduced the equity market's sensitivity to US growth conditions and oil prices, the report added. According to Morgan Stanley, while the domestic bid on shares to continue and foreign portfolio investors to buy, part of the demand will likely be met by renewed primary market activity. "Going into 2H2023, the market should start factoring in its view o n the general elections (slated for May-24) with either outright repositioning or considerable hedging of portfolios," Morgan Stanley added. /IANS