Sensex may hit record highs as geopolitical tensions ease: Expert

Veteran investor Ramesh Damani believes the Indian equity markets are entering a bullish phase and may soon revisit their all-time high of nearly 86,000 on the Sensex, last touched in late 2024. According to Damani, easing geopolitical tensions and a more stable global outlook are paving the way for strong gains in equities.

"President Trump’s recent military decisions have reshaped the Middle East conflict narrative. Over the weekend, we saw a shift in sentiment—investors now see the possibility of peace, and that’s being reflected in the markets," he said.

Damani pointed to the strong performance of global indices like Israel’s Tel Aviv 25, which recently hit new highs and outpaced the Dow since the onset of the Hamas conflict. "This rebound signals renewed investor confidence and hints at a return of capital to risk assets," he added.

While global risks have eased in the near term, Damani warned that attention could soon return to unresolved issues in the U.S.—including rising deficits, inflation worries, and trade policy uncertainty.

Back home, he believes Indian stocks are well-positioned to benefit from this global "risk-on" wave. "The 1,000-point surge on Friday shows how sensitive the market is to positive cues. This market is primed for upside. I wouldn't want to be short here," he remarked.

He advised investors to view any market correction as an opportunity to build long-term positions. “India's structural growth story is intact, and the market is set for higher levels,” Damani concluded.