Sachin Bajaj, the executive vice-president and chief investment officer at Axis Max Life Insurance, highlighted the potential risks to Indian markets from the ongoing conflict in West Asia. He noted that sustained oil prices above $100 per barrel could negatively impact corporate earnings and domestic investment flows, which have been absorbing foreign portfolio investor (FPI) outflows. Since the war began on February 28, the Nifty50 index has fallen by over 10%, reflecting broader market corrections. If the conflict is resolved quickly without further damage to energy infrastructure, Bajaj anticipates a V-shaped recovery in markets. Conversely, if the war continues, the pressure on oil prices and corporate margins could lead to sustained FPI outflows and increased market volatility. Bajaj suggests focusing on defensive sectors like pharma, healthcare, and IT, while avoiding sectors negatively impacted by rising crude prices, such as airlines and travel. With FPIs recently selling nearly $13 billion in equities, the outlook for their return hinges on a significant de-escalation of the conflict.