Archive · 23 Jul 2026
HDFC Securities CEO on US-Iran Conflict
Dhiraj Relli, the CEO of HDFC Securities, thinks that a long-lasting conflict between the US and Iran could make companies earn less money.
However, he believes that the year 2027 might be better than 2026.
He also thinks that the second half of 2026 will be better because people will feel more positive, and the stock market will be more stable.
He suggests that investors should put money into different sectors like banks, manufacturing, defence, and pharmaceuticals.
He also advises that while Indian stocks should be the main part of investors' portfolios, they should also consider putting some money into global markets to spread their risk.
Prolonged US-Iran conflict may lead to cuts in earnings growth estimates.
FY27 earnings growth expected to be better than FY26.
Second half of CY26 expected to be better with improving sentiments and reasonable valuation multiples.
Overweight sectors include diversified financials, private banks, manufacturing, industrials, defence, pharmaceuticals, cement, and consumer discretionary.
Underweight sector is consumer staples.
- Who
- Dhiraj Relli, MD and CEO of HDFC Securities
- What
- Impact of prolonged US-Iran conflict on earnings growth estimates and market performance
- When
- First half of CY26 and expectations for H2CY26 and FY27
- Where
- Indian stock market and global markets
- Why
- To provide insights on market outlook, sector opportunities, and global investing strategies
Optimistic View
Pessimistic View
Earnings Growth
Optimistic View
FY27 earnings growth will be better than FY26 despite potential cuts due to prolonged conflict.
Pessimistic View
Prolonged US-Iran conflict may lead to cuts in earnings growth estimates.
Market Sentiment
Optimistic View
Improving sentiments, prolonged consolidation, and reasonable valuation multiples expected in H2CY26.
Pessimistic View
Market remains fundamentally bottom-up with growth-oriented themes and companies scaling up expected to be key beneficiaries.
- Dhiraj Relli
- MD and CEO of HDFC Securities
- FY26 Earnings Growth
- Disappointing performance in the first half
- FY27 Earnings Growth
- Expected to be better than FY26
- Market Volatility
- Driven by US trade tariffs, domestic policy dynamics, energy price shocks, and supply disruptions
- Overweight Sectors
- Diversified financials, private banks, manufacturing, industrials, defence, pharmaceuticals, cement, consumer discretionary
- Underweight Sectors
- Consumer staples
- Global Investing
- Complement domestic exposure with selective global investments