Markets in June are telling a story of resilience under pressure. Domestic equities look attractive at 18x forward PE, yet the Middle East crisis warrants a staggered approach, while the rupee, commodities, and debt markets each carry their own set of crosscurrents.

In this edition, AssetX maps the terrain across every major asset class, so your investment strategy stays sharp and well-positioned.

Equities

Domestic Equity markets are seeing improving top-line growth along with more palatable valuations. March 2026 quarter results have seen strong double digit profit growth though June quarter could be more mixed amid rising input costs. Nifty 1Y Fwd PE at around 18X is attractive but the current geo-political crisis acts as a strong headwind in the near-term. While our base case continues to anticipate a healthy recovery, the evolving situation in the Middle East warrants a more cautious, agile and staggered approach to fresh allocations. Global equities are similarly exposed to geopolitical risks, though robust earnings momentum, particularly within the technology sector continues to provide support. New allocations can be considered through a well-diversified mix of developed markets, including the US, and select emerging markets outside India.

Alternates

Rapid advances in AI and defense technologies continue to drive investor interest across Unlisted Equities, including deep-tech PE and VC. However, recent IPOs listing below pre-IPO valuations have tempered appetite for late-stage private deals. The preference is shifting towards companies still two to three years from listing, where entry valuations and risk-return trade-off may be more reasonable.

Commercial Real Estate see a steady growth path with Bangalore & Delhi NCR market leading the charge.

Fixed Income & Commodities

Domestic Debt markets have seen some short-term volatility largely driven by global factors. Increasing inflationary risks, amid higher global crude oil prices remains the key headwind, however, recent constructive measures by the RBI and the Central Government to attract foreign capital should help soften yields.

In Commodities, both gold and silver though have strong fundamental drivers, have been volatile during the ongoing crisis. We believe, allocation to precious metals can be staggered to build new positions, with gold ~USD 4,200 and silver at or below USD 65 seen as good levels for accumulation.

Currency

INR has shown extreme vulnerability in the current geo-political crisis as DXY strength + FPI outflows + potential increase in CAD amid higher oil prices have weighed on the domestic currency. However, the recent coordinated measures announced by the RBI and the Central Bank to garner foreign capital should help stabilize INR. We expect INR to move in a band of 90-96/USD.

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AssetX brings you facts and data that cut through market noise. We highlight the most important signals across major asset classes in the global financial markets, so your investment strategy always stays on point.

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This communication is for informational purposes only and does not constitute investment advice. Please refer to the full disclaimer in the Asset X report dated June 5th, 2026.