Jyoti Vaswani, the Chief Investment Officer at Canara HSBC Life Insurance, believes that the equity markets may be affected by near-term challenges in corporate earnings for a while.

Despite concerns about weak demand in the auto sector, a slowdown in bank credit growth, and stagnant volume growth in FMCG companies, Vaswani remains positive about the medium-term earnings trajectory of the Indian market. She points out that the sustainability of the strong double-digit earnings growth experienced in recent years is now being questioned.

In the IT sector, she notes that many companies are trading at valuations higher than historical averages, indicating that the sector's turnaround has already been factored into stock prices. In the current market environment, Vaswani prefers large-cap IT firms over mid-cap counterparts, taking a cautious approach to investment.