India’s Market Outlook: Brace for Profit‑Booking If US‑Iran Optimism Fades, Warns Analyst
- Nishadil
- June 13, 2026
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Sonam Srivastava cautions on potential profit‑taking and tough quarters ahead
Analyst Sonam Srivastava flags a possible wave of profit‑booking if the optimism surrounding a US‑Iran deal wanes, forecasting a challenging period for Indian equities over the next two quarters.
India’s equity markets have been riding a wave of optimism lately, buoyed by talks of a possible US‑Iran nuclear accord and a surge of foreign inflows. The Nifty and Sensex have posted modest gains, and investors seem to be betting on a smoother geopolitical backdrop.
But Sonam Srivastava, a senior market strategist, pulls the rug a little back. She points out that the very optimism that’s driving the rally could quickly turn into a catalyst for profit‑booking. ‘If the narrative around the US‑Iran deal starts to lose steam, we could see investors scrambling to lock in gains,’ she says, noting that the market’s recent highs are still quite fragile.
Looking ahead, Srivastava warns that the next two quarters may prove tougher than many anticipate. With the deal still hanging in the balance, sectors that have been riding the positivity—like IT and pharma—could feel the pinch first. Moreover, a potential pull‑back in foreign institutional investor (FII) money could add to the pressure on valuations.
What does this mean for the everyday investor? Srivastava suggests a measured approach: keep an eye on the geopolitical headlines, consider trimming exposure in overly‑leveraged stocks, and stay diversified. While the upside isn’t gone, the risk of a sudden swing in sentiment means caution may be the better part of valor.
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