New Delhi, Dec. 18 -- The Indian stock market has underperformed many major global peers this year, mostly because of concerns over US tariffs, heavy foreign capital outflow, stretched valuations, and weak earnings. However, hopes prevail that the worst is behind us and the market may see a healthy rebound next year due to earnings recovery and a potential India-US trade deal. Mythili Balakrishnan, co-fund manager at Alchemy Capital Management, believes several factors point to an earnings revival from Q3FY26. In an interview with Mint, Balakrishnan shared what she expects from the markets next year, India's macro situation, the Indian rupee, and AI as a theme for investment. Here are edited excerpts of the interview:

In our view, market...