Markets ought to be going down but continue to rise. Dinshaw Irani explains why

economictimes.indiatimes.com:

Dinshaw Irani, CEO, Helios Mutual Fund, says they have not been very adventurous in their shopping list and instead been fairly cautious. They have moved away from midcaps to a larger extent as they believe that midcaps are fairly overpriced. Helios is okay with the largecaps though given that they are still at a PE of some 21-odd forward earnings which is fairly reasonable given the kind of growth seen in the largecaps. In the smallcap space also, they are being cautious.
What is your market view? We can endlessly argue that markets should go down, but the fact is they are up. What does that indicate?
Dinshaw Irani: Look at what the earnings are doing. If you look from March quarter onwards, there has been roughly around a 5% cut in earnings on the Nifty or the indices as such, roughly 5% across both the broader indices and the narrow indices. And what has the market done? It has gone up 11%. Even this quarter I think roughly around 28 odd companies have reported in Nifty and the earnings growth is 3%.

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If you take away, say, the financials, it is a negative earnings growth, margin compression, everything. I mean, look at the broader indices also, BSE 500, I think around 180 odd companies have reported again earnings growth of 2-3%. If you take away financials, again, a