New Delhi, Dec. 16 -- Radhavi Deshpande, Chief Investment Officer for Kotak Mahindra Life Insurance, is positive about the Indian stock market. She says stabilising earnings estimates and steady domestic liquidity further reinforce the positive outlook. In an interview with Mint, Deshpande said earnings momentum in small-caps should pick up, paving the way for renewed investor interest and performance in both mid and small-cap segments. Edited excerpts:

After two years of relatively muted earnings, reflecting soft nominal growth, we see conditions turning more supportive.

With fiscal and monetary steps in place to stimulate activity, and market valuations broadly in line with long‑term averages, returns should track the improvemen...