ETMarkets Smart Talk: Planning to invest Rs 10 lakh? Can put 70% in equities if you have stable cash flows: Ajit Banerjee

“Indian equity market valuations are at a marginal premium to fair value. As on Sep 22 Nifty P/E(x) on 1 year forward basis is at 18.8x over an average of 18.5x and P/B(x) of 2.9x against the average of 2.7x. From a valuation perspective, while the current valuations may look slightly higher, markets provide an opportunity to generate wealth over a long period of time.”