DSP Mutual Fund Flags 'Uneasy Calm' in Markets, Sees Selective Opportunities

• DSP Netra report highlights disconnect between rising global risks and calm financial markets.
• Indian equities underperformed, reducing valuation premium over emerging markets, but drawdowns remain shallow.
• Small- and mid-cap stocks remain expensive despite some easing; significant price damage seen in January 2026.
• Opportunities emerging in sectors like IT and FMCG as valuations become more attractive after de-rating.
• Long-duration bonds present clear opportunity; caution advised on precious metals like gold and silver due to high valuations.