From 17,700 points to 26,000 points

In August last year, the Sensex slumped to as low as 17,700 points. It's now at 26,000 points. If you buy now, you are likely to be buying at the most expensive period in the last 12 months. The Sensex has risen 50%, while select stocks have risen, 100, 200 and even 300 per cent.

Indian markets remain expensive

In comparison to other emerging and developed markets, India remains most expensive in terms of price to earnings multiples next only to the United States. The mantra to make money from shares is to buy low and sell high. You are certainly not buying at low levels anymore.

Interest rate risk

There's a high probability that there could be a rise in interest rates in the US. When that happens it's likely that FIIs could pull some money back from emerging markets. This could put pressure on the Indian markets.

You can even now get decent interest rates from deposits

You can still get a decent interest rate in excess of 9 per cent in a bank deposit in India. With inflation likely to fall interest rates may fall. Hence, if you at least partially lock money into three year deposits, you would have locked money at high interest rates, not worrying about interest rates falling.

Sell now and buy when markets fall

If you can partially book profits in shares and buy at lower levels, you would end up with more shares for the same price. So, book profits, wait for markets to fall and re-enter the markets.