Despite the Indo-Pak conflict, I still believe Indian markets will remain positive. Historically, wars or short-term escalations usually last for 3–4 days, and even if tensions extend for up to two months, there is no need for panic. After any resolution or ceasefire, we can expect a fresh rally in Indian markets.
Previously, I mentioned that Indian markets would begin to rally from April, and while the recent tensions have caused a temporary slowdown and cautious sentiment, I remain confident. I expect Indian markets to rise by 15% from current levels, with my anticipated Nifty target at 28,000 by year-end.
However, we need different investment strategies depending on our financial goals and risk profiles.
Investment Strategy:
For long-term investors: Continue SIP-based investments in fundamentally strong sectors like infrastructure, capital goods, banking, and auto.
For short-term traders: It’s better to avoid aggressive trading in the current volatile environment.
For conservative investors: Focus on hybrid funds or balanced advantage funds to manage volatility.
On Gold:
I hold a bearish view on gold for May, expecting a correction of 5–10%. Geopolitical uncertainty has already been priced in, and any resolution could weaken demand for safe-haven assets.
Short-term trades in gold should be avoided due to unpredictable price swings. Instead, consider SIP-based investments in gold ETFs or Sovereign Gold Bonds (SGBs) if you’re looking at long-term wealth preservation.