With a ceasefire easing tensions between India and Pakistan, the main indices on Dalal Street rallied sharply on Monday. But after the dust settles on the dramatic rebound, many investors are left wondering—what now?
The benchmark BSE Sensex soared over 2,200 points while the NSE Nifty50 jumped nearly 700, riding on the wave of geopolitical relief, a global equity rebound, and a recent sovereign rating upgrade.
Yet beneath the euphoria lies a more pressing question: Should investors chase the rally or stay cautious?
Manish Goel, Founder and MD of Equentis Wealth Advisory Services, believes the answer lies in discipline, not reaction. “Global events like the Trump tariff announcements and recent India-Pakistan border escalation have triggered heightened volatility in the last 30–45 days. However, such episodes, though unsettling in the short term, rarely alter India’s long-term growth trajectory,” he said.
Goel argues that India’s underlying economic fundamentals remain robust, bolstered by strong PMI and inflation data. That resilience gives investors room to be patient and opportunistic.
BUY THE DIP, NOT THE HYPE
History shows that markets tend to correct almost every year—but also recover, often quickly. This makes sharp pullbacks a strategic buying opportunity rather than a reason to exit. “Every correction offers a chance to accumulate quality businesses at better valuations,” Goel said, adding that keeping 10% of one’s portfolio in cash or low-volatility assets allows investors to act decisively when corrections of 10% or more occur.
His advice mirrors what some analysts have said about today’s rally—it’s driven more by sentiment than by fresh economic triggers. Which means that while the rally may sustain in the short term, true wealth will be built by those who stay focused on the long game.
WHAT TO WATCH NEXT
While the ceasefire has cooled nerves, investors must still keep an eye on global uncertainties—from the US-China trade situation to Trump’s tariff rhetoric, both of which could create fresh turbulence. Back home, Q4 earnings and upcoming macroeconomic data will be key for the next leg of market direction.
If you’re already invested, the advice remains simple. Don’t overreact. If you’ve been sitting on the sidelines, consider gradually entering the market, focusing on high-quality companies with strong balance sheets and consistent earnings.
The market rewards preparation over prediction. In this phase of elevated volatility, the smartest move may be to stay steady—and keep your powder dry for the next real opportunity.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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