Market expert Sunil Subramaniam has advised investors to remain cautious in the near term amid rising geopolitical uncertainty, input cost pressures and the evolving impact of the ongoing global conflict on corporate earnings. While he remains constructive on select domestic themes such as consumer durables, premium consumption and capital goods, he believes the market could witness heightened volatility in the coming months, especially as the impact of rising crude and raw material costs begins to reflect in Q1 earnings.
Speaking to ET Now, Subramaniam said the recent rally in pharma stocks was partly aided by rupee depreciation, which boosted export-oriented companies. However, he warned against extrapolating recent quarterly earnings into the future as the current numbers do not fully capture the impact of higher input costs, especially for active pharmaceutical ingredients (APIs), freight and global supply disruptions caused by geopolitical tensions.
