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Below the Quote on Markets by Mr Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life

"Indian markets are likely to remain volatile in the near term amid geopolitical uncertainties and elevated crude oil prices, which could keep inflation and currency pressures in focus. While these factors may weigh on sentiment in the short run, the medium-term outlook for Indian equities remains constructive.

Valuations have moderated meaningfully from their peaks, domestic liquidity continues to remain robust through sustained mutual fund inflows, and earnings growth is expected to gradually recover. The ongoing earnings season will be crucial, with sectors such as banking, metals and healthcare expected to demonstrate resilience.

Given the correction witnessed across large, mid and small-cap segments over the past few years, a broad-based investment approach appears increasingly attractive. A multi-cap strategy enables investors to participate across the market spectrum, thereby benefiting from diverse growth opportunities while mitigating concentration risks. With valuations becoming more reasonable, domestic inflows remaining resilient and earnings growth expected to improve over time, the broader market is well positioned for recovery. Additionally, foreign investor interest is likely to return as global uncertainties ease, making this an opportune time for investors to consider diversified multi-cap allocations to capture long-term wealth creation opportunities

While global investors may continue to remain cautious in the near term, any moderation in the AI-led trade and improving earnings visibility could lead to renewed interest in Indian equities. In this environment, a diversified approach with meaningful exposure to multi-cap strategies appears well suited to capture opportunities across market segments while navigating short-term volatility."

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