India is currently in the midst of a buy on dips market. Quality stocks can be bought at lower levels when they correct. However, thematically the consumption theme continues to remain the principal theme of the markets. The P/E ratios are surely high by historical standards but that does not in any way take away from the inherent strength of the markets.

The market is today largely dependent on the liquidity flow into the market both from the FPIs and the domestic mutual funds. Hence the market is highly vulnerable as there is too much of liquidity chasing too little number of quality shares. Hence a phased approach like an SIP or a buy on dips approach would work a lot better in the current market context.