Iran conflict adds fresh uncertainty, but correction creating opportunities: Sunil Singhania

Singhania said several headwinds that had weighed on markets earlier were beginning to ease before the latest geopolitical developments disrupted sentiment.

Geopolitical tensions and rising oil prices have triggered fresh volatility in equity markets, leading to foreign investor outflows and sharp corrections in several stocks, said Sunil Singhania, Founder of Abakkus Asset Manager.

Speaking at the second edition of Moneycontrol's Global Wealth Summit 2026, Singhania said several headwinds that had weighed on markets earlier were beginning to ease before the latest geopolitical developments disrupted sentiment.

“Economy was coming back on track, corporate profitability was coming back on track. The tariff issue was more or less sorted, at least reduced in terms of intensity,” he said. However, the ongoing Iran conflict has introduced new risks, particularly for India because of its dependence on crude imports.

“Out came this joker of the pack in terms of the Iran conflict, and conflicts are never good, more so when it is in the region where India gets impacted the most because of its reliance on crude,” Singhania said.

FII Outflows and Market Nervousness

Singhania noted that the escalation in geopolitical tensions has led to a sudden shift in investor sentiment and foreign institutional investor outflows. “We have seen the emergence of massive FII outflows… countries like India, which get hit because of oil and consequently the currency also take a beating, have seen a major brunt,” he said.

The sell-off has also affected traditionally stable companies, he added. “Even stable companies like banks and Larsen of the world falling 10–15–20 percent,” he said. According to Singhania, markets are currently waiting for strong positive developments to stabilise.

“It is a phase where you need some kind of good news… I think war will de-escalate sooner than later, but we need very decisive good news for the markets to find its bearing,” he said.

Correction Creating Buying Opportunities

Despite the volatility, Singhania said the recent market correction is creating investment opportunities across sectors.

“Stocks are cheaper than what they were 18 months back, and in fact more cheaper over the last one week, 10 days,” he said. He pointed out that several sectors have seen significant corrections, especially financials and engineering companies.

“Financials, particularly larger banks, have fallen a lot. Some of the engineering companies… stock prices have fallen a lot,” he said. Singhania also highlighted opportunities in the broader market. “Broader markets and smaller companies are where we see much better opportunities than ever before,” he said.

Oil Prices Could Ease Later

Singhania said that while crude prices have risen due to the conflict, there is a possibility that oil prices could fall once tensions ease. “I am very positive that this conflict has to end sooner than later,” he said, adding that if supply stabilises, oil prices could decline.

“The way crude prices have moved up and the way the supply is responding, it is possible that when things settle, oil can be significantly lower than when the conflict started, which can be great news for India,” Singhania said.