The ongoing geopolitical have rattled global financial markets. Investor sentiment has weakened across regions, and Dalal Street has not remained untouched.
The nervousness is also visible on Dalal Street, where foreign institutional investors (FIIs) have been pulling money out of Indian equities. Data shows FIIs have sold shares worth about Rs 15,800 crore so far this month.
Benchmark indices such as the Sensex and Nifty have seen declines as investors reacted to rising uncertainty, volatile crude oil prices and fears of a wider conflict. For many retail investors, this has meant seeing their
However, market experts say such corrections during geopolitical crises are not unusual and investors should focus on discipline rather than panic.
Abhishek Kumar, Sebi RIA and Founder of Sahaj Money, says investors should first resist the urge to panic.
“The first step is to remain calm and hold your current positions rather than panic selling during a temporary dip,” he said.
“If your original investment rationale and financial goals remain unchanged, look at the ‘red’ as a paper loss that only becomes real if you exit. Reducing exposure should only be a last resort if you have immediate liquidity needs.”
Trivesh D, COO of Tradejini, echoed a similar view and said markets have historically bounced back after geopolitical shocks.
“Don’t panic. Markets have always recovered from geopolitical shocks,” he said.
“Even during the current conflict, the Sensex declined about 2.17% and the Nifty around 2.13% sharp moves, but not structural damage. Investors should review their asset allocation rather than reacting to short-term losses.”
He added that exiting equities during volatile periods can be damaging.
“If any single position has become disproportionately large, partial profit booking makes sense. But exiting equities entirely during volatility is often the biggest wealth destroyer.”
Many Indian investors invest regularly through systematic investment plans (SIPs) in mutual funds. Experts say these investments should ideally continue even during periods of uncertainty.
Kumar said long-term investors benefit when they stay invested through volatile periods.
“If they are investors for long term then they should consider continuing their SIPs without interruption to benefit from rupee cost averaging,” he said.
“As volatility allows one to use their SIPs to purchase more units when prices are low, which eventually lowers their average cost of investment.”
He added that trying to time the market often leads to mistakes.
“As it’s difficult to call the bottom hence pausing SIPs during a downturn often results in missing the eventual recovery and significantly reduces the power of compounding over the long term.”
Trivesh D also pointed to data that shows Indian investors are increasingly staying disciplined.
“Continue. India’s SIP inflows crossed Rs 3.34 lakh crore in 2025, up from Rs 2.47 lakh crore the previous year, showing that investors are increasingly staying disciplined through volatility,” he said.
“Pausing SIPs defeats the very principle of rupee-cost averaging. When markets fall, investors accumulate more units at lower NAVs.”
For investors planning to deploy lump sum money into equities, experts recommend a staggered approach rather than investing everything at once.
Kumar suggests spreading investments through a systematic transfer plan.
“It is generally wiser to stagger the lump sum investment through a Systematic Transfer Plan (STP) rather than investing all at once or waiting for the conflict to end,” he said.
“By spreading the investment over multiple periods one can mitigate the risk of entering the market at a local peak while still participating in potential price corrections.”
Tradejini’s Trivesh D also recommends deploying money gradually.
“Stagger the investment,” he said.
“Perfectly timing the market is unrealistic. A practical strategy is to deploy the lump sum in tranches over three to four months, allowing volatility to work in the investor’s favour.”
Periods of geopolitical tension often push investors towards safer assets such as gold and debt instruments.
Kumar says the decision should depend on an investor’s overall asset allocation.
“One needs to invest across assets such as equity, debt and gold as these assets typically have a low or inverse correlation with equities,” he said.
“Gold acts as a hedge against currency depreciation and global uncertainty, while debt provides capital preservation and liquidity.”
He added that while these assets help stabilise portfolios, investors should not move entirely away from equities.
“These assets also play laggard when the equity makes a comeback so one is advised to invest across these assets based on their risk appetite.”
Trivesh D pointed out that gold has seen strong gains amid global uncertainty.
“Gold has risen by almost 67% in 2025, its highest jump since 1979, with domestic rates touching Rs 1.39 lakh per 10 grams,” he said.
“Maintaining a 10–15% allocation to gold can provide portfolio stability during global shocks. Furthermore, short-duration debt funds can also serve to diversify the portfolio without the volatility of equities.”
Certain sectors tend to perform relatively better during geopolitical tensions.
Kumar said defence and commodity-linked sectors can benefit.
“The defence sector often remains resilient or gains traction as nations increase security spending and prioritise indigenisation during global conflicts,” he said.
“Energy and commodity stocks can also see an uptick because supply chain disruptions often drive up the prices of oil, gas, and metals.”
Trivesh D noted similar trends in the current environment.
“The energy sector is stable now. Defence, metals, and pharma indicate relative resilience,” he said.
“Defence companies benefit due to rising global military spending, while pharma often acts as a defensive sector during economic uncertainty.”
during Middle East conflicts, particularly for India which imports most of its energy needs.
Kumar said sectors that depend heavily on oil as a raw material may face pressure.
“Sectors that rely heavily on oil as a raw material, such as paints, lubricants, and specialty chemicals, are usually hit hardest due to rising input costs and shrinking margins,” he said.
“The aviation and logistics industries face significant pressure from higher fuel expenses, while the automobile sector may see dampened demand if fuel price hikes lead to higher ownership costs.”
Trivesh D said higher oil prices can also affect the broader economy.
“Every $10 increase in crude prices can widen India’s trade deficit by roughly 0.3% of GDP and push inflation higher,” he said.
“Sectorally, aviation, paints, chemicals, tyres, and oil marketing companies typically face margin pressure.”
Prashasta Seth, CEO of Prudent Investment Managers, said geopolitical shocks often cause sharp but temporary market corrections.
“Heightened geopolitical tensions following the recent Iran war developments have triggered sharp corrections in domestic markets and amplified market volatility,” he said.
“History suggests that geopolitical shocks typically lead to sharp but temporary drawdowns, with markets stabilising once clarity emerges.”
He said investors should avoid making emotional decisions.
“Investors should avoid panic selling if their equity portfolios turn negative and instead review their asset allocation in line with long-term financial goals,” Seth said.
“If equity exposure has reduced due to recent underperformance, the current correction can be used as an opportunity to gradually increase exposure by about 3–5%, focusing on fundamentally strong companies.”
He also stressed the importance of quality investments and diversification.
“Companies with strong balance sheets, low leverage, stable cash flows, and pricing power are typically better positioned to withstand earnings disruptions,” he said.
While volatility may persist in the near term due to crude oil prices, currency movements and global risk aversion, Seth said India’s long-term growth story remains intact.
“Periods of volatility should be seen as phases of recalibration rather than reasons to abandon long-term investment strategies.”
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)