Jonathan Schiessl flags prolonged inflation risk amid conflict

The broader market is experiencing significant downturns, as evidenced by the Sensex and Nifty falling sharply, with banking stocks like HDFC Bank also under pressure. This aligns with the cautious sentiment and FII outflows mentioned in the article.

• •Jonathan Schiessl flags prolonged inflation risk amid geopolitical conflict.
• •Investors are cautious, prioritizing capital preservation and reducing risk exposure.
• •Foreign investors are trimming exposure from India due to energy price spikes and tech sector concerns.
• •Risk flag: Continued geopolitical escalation could worsen inflation and FII outflows.
• •Risk flag: Unexpected positive domestic economic data could temporarily counter negative sentiment.