Foreign institutional investors (FIIs) have invested $10 billion in Indian equities in the first quarter of FY24, leading to a rally in the stock market. Analysts believe that India is a preferred destination for investors looking for alternatives to China. The participation in the rally has been broad-based, with mid and smallcaps outperforming. With reasonable valuations, the Nifty index is expected to rally further and may reach 21,000. Encouraging progress of monsoons and a rate pause by the RBI are also boosting market sentiments. However, global geopolitical tensions and negative surprises in Q1 earnings could impact the market.