Expert view, Feb. 10 -- Pramod Gubbi, co-founder of Marcellus Investment Managers, believes the Indian stock market has a lot of headwinds to deal with at the current juncture. In an interview with Mint, he said the Indian stock market's valuations remain elevated, and earnings may not recover anytime soon. He further said if retail investors lose patience and domestic flows abate, there could be a significant selloff, especially in small and mid-caps. Here is an edited excerpt of the interview:

Given the various factors at play, predicting market movements in the short run is futile.

What we can do at best is try and understand how these factors might play out.

From a fundamental perspective, key factors for the fall have been disappo...