Should you start booking profits in stocks and mutual funds?

Mumbai: Though fundamentals are gradually improving, Indian equity market valuations continue to be high. For example, the trailing 12-month PE of Sensex and Nifty are now placed at 33.50 and 38.55 times, respectively. Experts argue that high trailing PEs is an aberration now because we are living in an exceptional period, and therefore, investors need to value stocks based on the EPS in coming 12 months (i.e. forward PE). However, valuation is