S Naganath, of DSPML Fund Managers says that the markets are at 18x FY08E earnings and is not too expensive. The subprime issues & higher currency volatility is a concern. Also the oil market is building a risk premium, which is a matter of concern. They are currently sensing caution in the market given international risk factors.

Speaking on the trends in the market, Naganath says that they expect to see the trend continuing in 2-Wheeler segment. On interest rates, Naganath opined that it is too early to say that interest rates may have peaked. He adds that the real estate has been underperforming but it may pick up. On the global scenario, he says that the global risks crucially poised, could derail sentiment. Also Carry Trade is seen impacted given any sharp change in $-Yen rate.

There is also no potential of an US economy slowdown, given the high commodity prices. On technology numbers, Naganath says that they are having a degree of caution in tech stocks, though the numbers so far have been in line.