Sensex on a high: What's next for India, 2nd-biggest emerging stock market?

Foreign inflows have seen a resurgence as global funds purchased a net $8.4 billion of Indian shares in the first three months of the year

The biggest quarterly foreign inflow in six years. About $370 billion in value gained. And now, India’s stock market just hit a record high -- its first in seven months.

The equity benchmark index for the world’s second-largest emerging market rose 0.5 percent Tuesday, closing above the 38,896.63 level that was required to make the milestone official. India is the first among markets valued at more than a $1 trillion to hit a peak this year.

After languishing in their worst run of losses in almost eight years, Indian equities posted the world’s biggest rally in the last month. Worries