New Delhi, Dec. 30 -- The Indian stock market may deliver a double-digit return next year, with Nifty 50 touching the 29,000 mark in the next 12 months, says Seshadri Sen, Head of Research and Strategy, Emkay Global Financial Services. In an interview with Mint, Sen said the mid and small-cap segments may outperform over the next one to two years, but a bottom-up and selective stock-picking approach is critical, with valuation discipline. Here are edited excerpts of the interview:

The domestic market was affected by two major headwinds. First, the impact of twin tightening (fiscal and monetary) in the calendar year 2024 (CY24) had a lagged impact on growth and affected earnings.

The broader market saw significant earnings downgrades fro...