New Delhi, March 23 -- Divam Sharma, co-founder and fund manager at Green Portfolio PMS, believes the Indian stock market is poised to rebound. In an interview with Mint, Sharma pointed out that, historically, markets recover three to six months before the economy. Therefore, he sees this as a good time to increase equity allocation rather than stay on the sidelines.

Discussing sectors, he highlighted mid-and small-cap stocks in defence, renewables, and manufacturing as potential long-term bets.

Here are edited excerpts from the interview:

The Indian stock market has taken a hit since September 2024, with Nifty 50 and Sensex down 14 per cent and mid and small-cap indices falling 17-20 per cent.

The key reason behind this is that forei...