Stay away from the market: DK Agarwal

DK Agarwal, Chairman & MD, SMC Investments, talks to ET Now on market outlook.

How are you positioning yourself in this fall?

We always believed that this market is for long term investors. But I still believe that the valuations are overstressed and we have been advising our investors to even now stay away from the market because we believe that even now, the Sensex is trading at a PE of 1780 of trailing earning.

So there is room for another 2000 to 2500 points in Sensex and once that level comes, that would be the time when investors should enter into this market and another thing the bigger concerns are coming from world markets and I believe that in spite of all these concerns, ultimately if these concerns do not turn into crisis.

So Indian markets are still expected to do well but if these markets develop into a situation like 2008, then even Indian markets would be affected and if these can be blessing in disguise, then lot of funds would be allocated to India and there will be a situation where more funds chasing the less peaks and then Indian equities can see some good valuations.