From a short-term perspective, it always looks like now the markets should consolidate, take a breather. But we have gone from around 8,800 to 13,000 plus now, with minor dips, about 2-4% consolidation. So if you are saying will we get 2-3% consolidation, then yes, but if you say the market may see a significant correction of about 8-10%, then I am not buying that. We are not cautious for the reason that we think that the market will decline 8%.

I think on the technical side, there is quite a lot of money still waiting to be invested in this market. If you look at the domestic institutional investors, they alone are sitting on close to USD 3.5 billion to 4 billion of cash. Even FIIs are by and large neutral to underweight on India right now.

There could be some degree of feeling of being left out in these rallies. So since the fundamental stories remain strong, any correction could result in these funds flowing back into the market.

As long as we are in an environment of increasing earnings estimates, where earnings estimates are being upgraded on a daily basis, we think that valuations have kind of achieved position of secondary importance. That is because what is appearing as slightly expensive today may suddenly appear cheap tomorrow because the earnings estimates get upgraded.

Having said that, I would also point out that at the present valuation at both 17.3 times one year forward, I think the market is appearing fully valued. So there could be the possibility of the market taking a breather over the near term and it may correct anywhere between 7-10%, but I don’t think it will be a very deep correction.