New Delhi, Oct. 22 -- In the 14 months I have been writing this column, I felt compelled to address current market conditions only once before. In 'Stay put or exit? What should investors do in this market slump,' (27 February 2025), I wrote, "In short, currently it is time to remain invested. All the data on compounding you see happens only if you remain invested" The Nifty closed February at a little above 22,100. It is up over 17% since then.

The new Samvat is as good a time as any to address the question of what to do now. First off, how is the market poised in terms of earnings and valuation fundamentals?

Consumption has been accelerating. Growth in private consumption across the Indian economy had reached a 21-year-low in 2023-24,...