War or no war, the fundamentals of investing remain unchanged: Sanjay Grover of Baroda BNP Paribas Mutual Fund

Mint, he said such corrections often create compelling entry points for long-term investors.Markets tend to react sharply to geopolitical events, especially in the early stages. However, over time, volatility usually stabilizes as markets adjust. What makes the current situation more complex for India is its dependence on energy imports.

Any spike in energy prices directly affects inflation, the current account deficit, and growth. If such conflicts persist, they could accelerate structural shifts—like increased adoption of alternative energy—similar to how Covid accelerated digital transformation. At present, liquefied petroleum gas (LPG) prices are a key area of concern.While the US is relatively less dependent on energy imports compared to India, global energy prices still influence inflation across both economies.

Higher energy costs can push inflation up and disrupt interest rate cycles, potentially delaying rate cuts. Even if conflicts end quickly, restoring energy infrastructure takes time, which can prolong supply disruptions. This could lead to short- to medium-term volatility and impact growth forecasts.

At the same time, Indian companies could benefit from opportunities in infrastructure rebuilding.Predicting the duration of geopolitical conflicts is inherently difficult, as seen with the prolonged Russia-Ukraine situation. Extended tensions could keep crude prices elevated, disrupt supply chains, and weigh on global growth and earnings. However, such corrections often create compelling entry points for long-term investors.We are currently seeing attractive opportunities in undervalued small- and mid-cap stocks, particularly in sectors like defence, real estate, and speciality chemicals.