New Delhi, April 1 -- Krishnan VR, the head of quantitative research at Marcellus Investment Managers, finds it difficult to predict how the Indian stock market may perform in FY27, thanks to the global uncertainty, especially the US-Iran war. In an interview with Mint, Krishnan said the knock-on effects of higher energy prices on FY27 earnings growth will be visible over the year. Krishnan also shared his views on sectors like IT and defence, and an ideal equity investment strategy at this juncture. Edited excerpts:

Large and small cap segments ended in the negative over the last year, while the midcap index delivered single-digit returns.

I think this performance is reasonable given we were coming off the high valuation base in late 2...