New Delhi, Nov. 24 -- The Indian stock market is hovering near record high levels as the Q2 earnings season signalled a recovery. Against this backdrop, Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments, told Mint that next year will be better for the Indian stock market than 2025 as FY26 earnings could grow in the 15-16% range. However, he is quick to warn that an AI bubble burst can result in a US market meltdown, sparing no market in its wake. Edited excerpts:

The Q2 results signal earnings recovery. The recovery is likely to be sustained since policies and the macro construct are supportive. H2 will certainly be better than H1. Cement and telecom will do well, while Autos can sustain the growth momentum. Financials ...