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rgone an extended period of correction and consolidation, creating a healthier foundation for future gains.Earnings Strength Fuels OptimismMehta believes the market's recent resilience has been driven by earnings growth, particularly among mid- and small-cap companies, even as foreign institutional investors remained largely absent. The market has gone through the grind of price correction, time correction, and valuation consolidation. The market has always been a slave of earnings, and earnings came out very good across large-caps, mid-caps, and small-caps. He added that improving macroeconomic conditions and lower crude oil prices are turning previous headwinds into potential tailwinds. There are green shoots showing right now. Looking at macros and earnings, the risk-reward is quite positive, especially for investors with a one- to two-year horizon. Power Ancillaries Preferred Over Direct UtilitiesWhile remaining positive on the power sector, Mehta prefers companies that support the broader energy ecosystem rather than power producers themselves.He highlighted opportunities in power automation, transmission infrastructure, and renewable energy-related businesses that stand to benefit from India's growing electricity demand and infrastructure spending. We have been advocates of power and power ancillaries. Companies involved in HVDC, power automation, and renewable infrastructure could benefit significantly from the ongoing capex cycle. He also sees value in engineering and manufacturing firms supplying equipment and services to larger power infrastructure players. The ancillary theme is the proxy play. The entire capex, power, and infrastructure theme should do very well from here on. Positive on HCLTech Deal, Cautious on ITMehta welcomed HCLTech's partnership with Sarvam but maintained his cautious view on the broader IT services sector. This tie-up augurs very well. However, we have generally been negative on the IT space for the last three years and continue to hold that stand. While acknowledging the possibility of moderate returns from frontline IT stocks, he believes better opportunities exist elsewhere. There can be 10-12% CAGR returns from large IT companies, but investors seeking alpha may find better opportunities in financials, capex-related businesses, and consumption plays. He noted that IT companies continue to face structural challenges despite sharp corrections in valuations. The long term is about how these companies adapt to digitisation and AI. That is something the Street wants to monitor closely. Constructive OutlookWith earnings remaining healthy and macro conditions improving, Mehta believes Indian equities are well positioned for the medium term. His preferred themes remain power infrastructure, capital expenditure plays, and financials, sectors that he expects to benefit from India's ongoing economic and investment cycle.