Market sentiment remains fragile, but India's long-term play is intact: Anand Shah of ICICI Prudential AMC

Mint, even during the Russia-Ukraine crisis, crude prices initially surged but eventually moderated as markets adjusted.He added that apart from geopolitical tensions, key risks for Indian markets include global liquidity conditions, movements in crude oil prices, and the availability of liquefied petroleum gas (LPG) and oil, as rising household energy costs could disrupt consumption momentum. Edited excerpts:Markets typically react first to headlines and then gradually reassess fundamentals.

The initial buying seen on 10 March reflected optimism that the conflict may de-escalate. However, the continuation of strikes keeps uncertainty elevated, and market sentiment therefore remains fragile in the near term.There is no doubt that the current situation, in which the Strait of Hormuz is disrupted and energy flows are affected, is a significant negative for the global economy, including India.

India imports approximately 80% of its oil, 50% of its liquefied natural gas (LNG) and 80% of its LPG requirements. Higher prices, alongside limited availability, have the potential to disrupt the economy's smooth recovery.What investors must remember is that until 27 February 2026, India’s long-term growth story remained firmly intact.

Events like these tend to delay economic momentum temporarily rather than derail it. We saw a similar pattern during the Russia-Ukraine conflict, where markets initially corrected sharply but later stabilized as investors recalibrated the actual economic impact.At this stage, the key unknowns are the timeline and severity of the conflict.

That uncertainty is what is currently keeping markets volatile. What transpires over the next two to three months remains critical.It would be premature to say the