Global events may drive near-term volatility, long-term outlook unchanged
City Air News
Mar 2, 2026 05:09
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“We remain focused on aligning portfolios with clients’ objectives, investment horizon and risk profile. Market events, such as those witnessed over the weekend, have occurred multiple times in the past and typically lead to short-term volatility, followed by a period of stabilisation.
Any correction, if it plays out, could help rationalise valuations further in India, which continues to remain among the fastest-growing major economies. Importantly, this is not an India-specific event. Near-term spillovers, if any, would largely be through spike in oil prices and certain other segments which rely on exports / imports. However, with OPEC mulling an increase in production and other options also available, India could explore alternate sources and routes. The supply-side pressures could moderate over time.
With several global markets impacted simultaneously, capital flows may be re-evaluated, and India could be seen as a relative safer destination given its domestic demand strength. Domestic investor participation has been healthy, with liquidity on the sidelines that has historically tended to come into equities during periods of correction.”
Naval Kagalwala, COO & Head of Product, Shriram Wealth Ltd
