Indian equities have extended their gains as investors remain cautiously optimistic, citing earnings, domestic flows, and a resilient global market despite geopolitical tensions surrounding the Iran conflict and ongoing economic uncertainties.
Indian equities have extended their rally even as investors weigh whether the move can last, with Aditya Agarwal of Coheron Wealth arguing that the market’s strength rests on a mix of earnings support, domestic flows and a broader willingness to look past short-term shocks. Speaking in an interview with Business Today TV’s Shailendra Bhatnagar, Agarwal also examined whether valuations still look reasonable after the recent run-up and which risks could unsettle sentiment next.
One of the biggest external variables is the Iran conflict, which has kept energy markets on edge. Commentary from Wilmington Trust said the initial market response to the U.S.-Iran confrontation included a jump in oil prices, though volatility in equities and bonds has remained relatively restrained so far. The firm warned that the lasting economic effect will depend largely on how long the conflict drags on and whether oil supplies are disrupted, with higher inflation and weaker consumer spending among the main risks.
That resilience has been echoed in broader global markets. ABC News reported that U.S. shares have hit repeated record highs during the war, helped by solid corporate earnings and growing investor confidence that geopolitics alone will not derail the cycle. Moneycontrol noted that after the first shock, traders have shifted back towards fundamentals, including artificial intelligence and emerging-market themes, while the dollar has given back much of its early conflict-driven gains.
For investors, the common thread across the commentary is caution rather than alarm. Mercer Advisors said diversified portfolios were broadly better placed before the crisis and urged clients not to make aggressive moves based on headlines, while Advisor Perspectives suggested the conflict could still feed a longer period of inflation pressure and market uncertainty. Seeking Alpha went further, saying markets have been unusually quick to recover from drawdowns, but questioned how long that appetite for buying dips can persist if the geopolitical backdrop worsens.
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