•Axis MF advises investors to remain invested despite geopolitical tensions, stating that wars historically haven't led to sustained equity underperformance.
•Near-term volatility is expected from US-Israel-Iran hostilities, but India's long-term investment trajectory is unlikely to be significantly altered.
•Crude oil is identified as the primary channel through which global conflicts affect India, given its high import dependency and the risk posed by the Strait of Hormuz.
•Despite oil price surges (e.g., during the Russia-Ukraine war), Indian equities have shown resilience, with Nifty 50 ending 2022 positively after an initial sell-off.
•The RBI plays a critical stabilizing role, focusing on core trends and growth durability, while India's strong forex reserves and orderly rupee movements act as buffers against external shocks.
