Amid concerns over the impact of the West Asia conflict on corporate earnings, Chirag Setalvad, head–equities at HDFC AMC, says the setback is likely to be short-lived and India remains well placed to deliver healthy earnings growth over the medium to long term. He tells Kushan Shah that while stock selection remains a challenge, there are opportunities in both large and small caps. Excerpts: How do you assess the current state of the equity markets? Large-cap stocks are reasonably valued, while mid- and small-caps continue to trade at a premium to their long-term averages