Krishna Sanghavi, Chief Investment Officer of Mahindra Manulife Investment Management, has expressed that sector rotation will likely be a significant theme in the market. He discussed the ongoing US-Iran conflict, suggesting that while its resolution might reduce volatility, the impact of higher energy prices could persist longer. In his view, the normalization of energy supplies may be quicker for India due to its geographical proximity to the conflict. Investors are advised to adopt a medium-term strategy, focusing on disciplined investments such as systematic investment plans (SIPs) to capitalize on potential market normalization. Currently, Sanghavi recommends increasing exposure to defensive sectors like energy, healthcare, and select consumer staples due to market uncertainties. However, as geopolitical tensions ease, sectors such as cyclicals, financials, and consumer discretionary may become more attractive, benefiting from improved growth visibility and demand. His value fund has performed well in FY26, primarily due to effective stock selection in traditional sectors and strategic underweight positions in certain areas.