New Delhi, May 26 -- Devarsh Vakil of HDFC Securities says a confluence of factors, including geopolitical uncertainties, ongoing earnings season and institutional capital flows, keeps the market volatile. He adds that steady retail participation provides crucial market support during corrections. In an interview with Mint, Vakil says banks, cement, chemicals, defence, pharmaceuticals, metals, logistics, and telecom may generate alpha in FY26. Here are edited excerpts of the interview:

Geopolitical uncertainties, ongoing earnings season, institutional capital flows, and derivatives expiry dates are the primary drivers of volatility in the Indian stock market.

Unresolved issues on India's borders contribute to uncertainty that affects in...