New Delhi, April 22 -- Rajesh Singla, CEO and Fund Manager, Alpha AMC, believes the defence story remains structurally strong due to increased government spending, emphasis on indigenisation, and export opportunities. For IT, he believes AI (artificial intelligence) is changing the nature of demand, so investors should approach the sector as company-specific bets. In an interview with Mint, Singla also shared his views on the current market structure, the impact of the US-Iran conflict, and earnings expectations. Edited excerpts:

The market has done a fair bit of heavy lifting already. Valuations in several pockets, especially mid and small caps, are no longer cheap.

So, expecting a straight-line rally from here may not be realistic. Af...