Guys!
We are squabbling about an Index that has been blatantly manipulated, with official wink & nod, to show as if all is well with the Indian economy.
If you factor in inflation then a life-time high would be around 7500 or 9000 depending on the rate of inflation you consider. So taking, for arguments sake, the higher figure we are 33% from the top. So 33% discount to the current index is 3960. And that is the effective index rate at which you are getting many good quality stocks. So technically both of you are correct. Only remember market nowadays is moving in steps of 200-250 points with sharp swings on both sides. And it is being blatantly manipulated by both FIIs & DIIs ( to some extent) as retail & HNIs have stayed away.
We have already started slowly re-building up our portfolio & identifying stocks for fresh investments. It is literally a feast of available choices & sector wise we have to choose between many almost similarly excellent but beaten down stocks. Some which we have identified are giving div. yeilds of over 3% which can only go up in the years to come.
How does a stock having dividend yield of 3%, which will zoom to 6% in 5 years, no Debt, No promoter pledging, market value a fraction of book value look as an investment option for a holding period of 10 years? And that is exactly the sort of companies that some of the Long Only FIIs seem to be investing in.