Global markets are navigating a delicate balance between improving fundamentals and mounting geopolitical headwinds. From recovering corporate earnings to a volatile rupee and gold surging past $4,200, every asset class is telling a different story.

In this edition, AssetX cuts through the noise to deliver the most critical signals, keeping your investment strategy sharp, informed, and ahead of the curve

Equities

Domestic Equity markets fundamentally are seeing improving macros and visible recovery in corporate earnings along with more palatable valuations; (Nifty 1Y Fwd PE at ~19X) however, the current geo-political crisis acts as a headwind in the near-term. While our base case continues to anticipate a broadening of market participation, the evolving situation in the Middle East warrants a more cautious, agile and staggered approach to fresh allocations. Similar to domestic equities, global equities remain vulnerable at such times, although tech sector earnings are leading the show, and fresh positions can be made between a well-diversified basket of DMs including US and EMs excluding 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 tradeoff 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, along with fiscal and BoP vulnerability amid elevated oil prices could keep the rate trajectory uncertain. In Commodities, both gold and silver though have strong fundamental drivers, have been volatile during the ongoing crisis. Allocation to precious metals warrant a more staggered approach to building 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 geopolitical crisis as DXY strength + FPI outflows + potential increase in CAD amid higher oil prices have weighed on the domestic currency. We believe, INR would remain under pressure till the time war continues and move in a broader band of 90-96, depending on Central Bank actions

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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. Download AssetX: Here

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 May 5th, 2026.