• Global macro risks: Prolonged geopolitical conflict in the Middle East threatens to trigger global stagflation, food and fuel inflation, and fiscal stress unless major nations actively de-escalate tensions through dialogue.
• RBI currency measures: The RBI capped banks' overnight dollar positions at $100 million to curb rupee depreciation from high import bills and ongoing FII outflows, a step intended to help bring back roughly $30 billion.
• Market valuation outlook: Indian equity valuations have become attractive after falling below roughly 19 times Nifty earnings, with underlying resilience supported by steady demand across auto, electronic, and defense manufacturing sectors.
• Asset allocation strategy: Rather than concentrated sectoral bets, investors are advised to choose diversified equity and multi-asset mutual funds, where funds have already raised equity exposure from 52% to 54%–55%.