Valuations, not growth, pose the bigger challenge for Indian markets: S Naren

​Earnings certainly was a problem in the September quarter and in the December quarter, things will be slightly better. But the problem is that if you look at more smallcap and midcap, you are giving them 60, 70, 80 PE. Is it justified? No. But the reason they are being given 60, 70, 80 PE is because there is continuous inflow into small and midcap funds and due to that the funds buy at 60, 70, 80 PE and that is the challenge if you ask me, is the problem rather than the economy.