Iran–Israel War: Iran Parliament Approves Closure Of Strait Of Hormuz; India Monitoring Oil Trends

As long as oil stays within the USD 65-85 range, India can manage the volatility. Only if it spikes to extreme levels like 100 - 120, it can create problems, Vora said.

The global liquidity, currency and interest rate scenario continues to be benign and financial conditions are getting increasingly benign, he said.

On a stand alone basis, India is doing fine. Government spending has accelerated again, and there are green shoots in private sector investment. Rural demand seems to be picking up. Overall, earnings are coming through, liquidity is abundant, policy remains growth-focused and there is a sustained flow of domestic savings to the equity markets he said.

We have seen many such geopolitical events in the past 30 years and markets have emerged stronger. There will be short term volatility due to external factors, but that will not change the India story. We remain bullish on domestic sectors including industrials, financials, selected, consumer discretionary and healthcare, he said.

Domestic factors support current valuation for long term investors expecting moderate returns, Shah said. Global factors from Trump policy to oil price / supply is boiling hot.

We need to keep a watch on availability of oil as well as price. We have enough FX reserves to manage higher oil prices in double digits. Oil prices Crossing triple digit or restricted supply will have an adverse impact on market, Shah said.

Traders should be extremely cautious. Investor should use correction as an opportunity to accumulate, he said.