'Domestic inflows will continue to increase in next 3-5 years; expect 12-15% earnings growth in long term'

The Nifty has rallied 165 percent in the last decade and 88 percent in the last five years to trade around 11,000 levels. The moot question on everyone's lips is whether the rally will continue.

Sukumar Rajah of Franklin Templeton Investment prefers long term earnings growth to short-to-medium term growth. "We see a lot of opportunities and momentum in some sectors and lack of momentum in some," he said, adding that India is a structurally strong economy with robust earnings growth going forward.

He sees India reporting a robust performance among emerging markets. "Earnings for 2 years are less predictable but we see long term earnings growth of 12-15 percent. Currently, we are growing below the trend but soon we can growth above trend in some sectors. Such double-digit growth expectations will support broader markets."

Over the next 3-5 years, Rajah feels domestic inflow is expected to increase but net inflow from foreign institutional investors may decline. He prefers companies in cyclical sectors, commodities and firms benefiting from the ease of doing business.