India Strategy – Geopolitical uncertainty shows chinks in the armor
Published on 09 Jun 2026
NIFTY has seen a cut of 7.2% in past 2 months and ~15.4% from 52 highs as war in west Asia has disrupted global supply chains and pushed crude prices up. Indian economy has not shown any brakes on the growth trajectory, but fissures have started showing up a bit in the wake of rising geopolitical risks and India’s foreign dependence, not only for crude but for essential like Fertilizers, rare earths, semiconductor and critical technologies. We believe Private Banks, NBFC, Metals, Capital Goods, Defence, Data Centers, Renewables, Railways, Ports, Ship Building, Semiconductors and Healthcare are themes to play. We remain cautious on IT Services, Consumer, Chemicals, Agri and Oil and Gas. Although markets are unlikely to show significant correction to breach recent lows, prolonged geopolitical uncertainty can further add to sharp swings.
