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“What I am trying to caution investors against is that the themes are good but what they are paying today should be more than paid back by future profitability. That is what the focus of investors should be. In so many companies, there was this concept of buy at any price. I think those stocks have not performed.”

The F&O contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.

​This indicates a bullish sentiment in these counters as the average traded and delivered quantity for 5 days, the cumulative open interest, and the price of the stocks have increased​

“We are just invested in a power transmission company. We think that continues to be a very safe place, plus what happens is there is no risk of default, etc, and lastly, because the company also has listed InvIT, a lot of these transmission companies could actually scale up faster.”

“Some of the railway stocks are still available at comfortable valuations of 20 or 30 times on a trailing basis as we do not have a coverage on a lot of them. But as I said, some of them are trading at much higher valuation and that is where the need to do some profit booking if someone has bought. People need not have fear of missing out (FOMO).”

India VIX was up by 3% from 11.34 to 11.69 levels in the previous trading session. Volatility was on the rise and the index witnessed some profit booking after the rally of the last few sessions.

“There is a good 30% to 40% drop in the PE multiple when you normalise for the cash element or go pre-Ind AS and normalise it for that aberration..So, when you normalise the PE multiple for how the P&L is going to look like adjusted for aberrations, the real PE multiple appears much lower than that.”