New Delhi, April 8 -- Sanjay Chawla, CIO - Equity at Baroda BNP Paribas Mutual Fund, believes RBI rate cut and government support may ensure a recovery in growth and earnings for FY26 over FY25. In an interview with Mint, Chawla spoke about market triggers, RBI rate cuts, mid and small-cap segments and sectors. Here are edited excerpts of the interview:

Overall, the earnings adjustment in the market for softer growth seems to be discounted.

With broader markets now trading in line with their long-term forward multiples, a lot of froth has drained out of them.

We expect further support from the monetary authority in India, the RBI.

Recent measures of infusing system liquidity, relaxing credit-deposit (CD) norms, and some marginal dilut...