Archive · 24 Jul 2026
Indian Markets Resilient Amid Global Risks
Indian markets are strong despite global risks like geopolitical tensions and high crude oil prices.
Ajay Garg from SMC Global Securities says India's economy is better prepared to handle these challenges due to strong domestic demand, healthy foreign exchange reserves, and robust banking systems.
While sectors like aviation and logistics may face difficulties, others like oil producers and defence companies could benefit.
Investors should focus on companies with strong balance sheets and avoid reacting to short-term geopolitical news.
The rupee's movement will be influenced by crude oil prices and US dollar strength, but India's strong fundamentals provide a cushion.
Overall, Indian markets have the potential to reach new highs in the second half of 2026 if earnings remain resilient and external risks moderate.
Indian markets remain resilient despite global risks like geopolitical tensions and high crude oil prices.
Sectors like aviation, logistics, and oil marketing companies may face higher input costs and margin pressure.
Upstream oil producers and defence companies could benefit from higher crude prices and global defence spending.
Investors should focus on companies with strong balance sheets and avoid reacting to short-term geopolitical news.
Indian markets have the potential to reach new highs in the second half of 2026 if earnings remain resilient and external risks moderate.
- Who
- Ajay Garg, Director & CEO, SMC Global Securities
- What
- Discussion on Indian equity markets' resilience amid global risks
- When
- Second half of 2026
- Where
- India
- Why
- To understand the impact of geopolitical tensions, crude oil prices, and global uncertainty on Indian markets
Optimistic View
Cautious View
Market Performance
Optimistic View
Indian markets can hit new highs due to strong domestic fundamentals and resilient demand.
Cautious View
Valuations in certain market segments are rich, and external risks could impact performance.
Sectoral Impact
Optimistic View
Upstream oil producers and defence companies may benefit from higher crude prices and global defence spending.
Cautious View
Sectors like aviation, logistics, and oil marketing companies may face higher input costs and margin pressure.
Investment Strategy
Optimistic View
Quality large-cap companies with strong balance sheets and governance standards are well-positioned.
Cautious View
Mid- and small-cap stocks have become demanding in terms of valuations, requiring selective investment.
- Foreign Exchange Reserves
- $675 billion
- Monthly SIP Inflows
- Above Rs 30,000 crore
- Crude Oil Import Dependency
- 85%
- US Treasury Yields
- 4.5–4.6%
- FY27 Earnings Growth Expectation
- 12–13%