Independent market expert Daljeet Kohli has advised investors to begin deploying capital gradually, suggesting that the worst of recent geopolitical tensions may be behind us. According to reports from The Economic Times, Kohli stated that "probably the worst of the war-related issues are behind us," while acknowledging that resolutions in such situations typically take time and involve complex negotiations. He emphasized a phased investment approach, recommending that investors start using money in 15-20% increments initially, with opportunities to add in small tranches during market downturns.
Kohli identified power sector companies as clear long-term beneficiaries, highlighting the value chain opportunities from renewables, generation, transmission, and equipment players. As reported by The Economic Times, he stressed that the push for energy security will sustain the sector's growth, noting that "everyone is now clear that we need to create in-house dependency for energy security." He also pointed to AI-linked sectors including semiconductors, data centers, and supporting accessories as emerging opportunities, while metals could see sustained momentum due to supply disruptions.
Within the power ecosystem, Kohli highlighted Power Finance Corporation (PFC) and REC Limited as attractive investment opportunities. According to The Economic Times, he noted that these lenders have disappointed in stock performance but are now available at very reasonable valuations, especially considering they are largely backed by state and central government guarantees with no NPAs. He explained that the market was building in growth expectations that their asset books did not reflect, leading to subdued valuations, but noted that with sector momentum and potential merger activity, these factors should improve performance.
Kohli cautioned that the actual economic impact of the conflict will unfold over time, with two to three quarters needed to understand how specific companies are affected by input costs, demand destruction, or raw material procurement delays. As reported by The Economic Times, he emphasized that "as of now, we are only analysing the near-term impact of the war. The actual impact will come over the next two to three quarters," when sector-specific and stock-specific reactions will emerge. He warned that volatility will persist during the uncertainty period while resolutions are being negotiated.
