The mid to long-term story for Indian equities continues to hinge on earnings upcycle. The thrust in the Union Budget through lower taxes comes as a tailwind for this sector. Short tenor bond funds continue to provide higher accrual, wider spreads as well as an optimum risk/reward. Seasonality factors typical of March quarter continue to play out that should normalise over the next fiscal beginning. The vagaries of equity market volatility also make hybrid products more relevant in the current market context, the SBI report noted. The report believes markets will become more discerning and move back towards companies which have strong business models, long- term earnings growth visibility and sustainable cashflows. The emerging issue to be tackled would be the dynamics of liquidity, said the report, which should have a material impact on the shape of the curve as well and on spreads going forward. The current market turbulence provides saner entry points for long- Term investors, the report said. The SBI Funds Management Limited report was released on Monday.