28/02/2026
Israel-Iran tensions may trigger selling pressure, crude prices seen as key risk for Indian markets..
Outlook for markets
Ponmudi R noted that the week ahead is likely to be marked by elevated volatility, as mounting tensions in the Middle East, raising the specter of a direct confrontation between the U.S. and Iran, coincide with a heavy slate of macroeconomic data releases in both the U.S. and India.
In the near term, energy and defense stocks typically find support in such an environment, while gold and U.S. Treasurys attract safe-haven flows, said Ponmudi R. By contrast, aviation, logistics, consumer discretionary and rate-sensitive stocks could face bouts of volatility as higher input costs and policy uncertainty weigh on sentiment. Oil marketing companies, aviation, paints, autos and logistics could face margin headwinds, while IT stocks may stay volatile amid global risk-off flows.
"Even so, the broader backdrop does not yet suggest structural fragility. Strong domestic institutional participation continues to provide a stabilizing counterbalance. For now, this appears to be a phase of elevated volatility rather than the onset of a deeper systemic unwind," he further added.
On the flip side, speaking at the Crystal Gazing Summit, organised by PMS AIF WORLD, Amit Jeswani of Stallion Asset said the markets "are too smart to not discount this." He doesn't expect much weakness in the markets.Pawan Bharaddia of Equitree concurred, "Some sentimental reaction is expected, nothing more than a short-term reaction."
