Growing geopolitical uncertainty has prompted investors to adopt a more defensive investment approach. Many market participants are reducing exposure to cyclical sectors while increasing allocations to defensive industries such as pharmaceuticals, FMCG and utilities. Rising crude oil prices and inflation concerns have further strengthened risk-averse sentiment.
Market experts advise investors to remain focused on fundamentally strong companies rather than reacting to short-term volatility. The upcoming earnings season is expected to provide greater clarity on corporate performance and help determine the market’s near-term direction.
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