New Delhi, Dec. 23 -- Pankaj Pandey of ICICI Securities expects the Indian stock market to deliver healthy double-digit returns over the next 12 months due to potential double-digit earnings growth, GST rate cut-led consumption growth, an India-US trade deal and a lower interest rate scenario. Pandey, however, warns that global risks remain a key headwind. His 12-month target for Nifty 50 is 29,500, while his corresponding target for Sensex is 98,500. Among the sectors, he is positive on BFSI, IT, capital goods, and real estate, while Bank of Baroda and KPIT Tech are among his top picks for the long term. Here are edited excerpts of his views:

Indian macros are on a solid foundation be it the inflation scenario (averaging at 2.1%), low i...