Expert view, July 15 -- Aditya Sood, a fund manager at InCred Asset Management, believes that after a tepid earnings growth in FY25, the mean-reversion to 10-12 per cent would be the key, as the Indian stock market is trading at a PE multiple of 21.7 times FY26. In an interview with Mint, Sood shared his expectations on Q1FY26 earnings, sectors he is positive about, and how a potential India-US trade deal may influence FPIs' flow into India. Here are edited excerpts of the interview:

At current levels, Indian equities are factoring in a lot of optimism, strong macro tailwinds, and robust domestic flows. However, sustaining gains at higher valuations requires incremental triggers.

After a tepid 5 per cent earnings growth for FY25, the ke...