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India market selloff opens buying window in financials, private banks: Allspring’s Prashant ParodaPrashant Paroda, Portfolio Manager-Emerging Markets at Allspring Global Investments says recent market corrections have made Indian equities broadly attractive, with sharp declines in financials and communication stocks creating buying opportunities, especially in private banks, if the geopolitical situation improves within a few weeks.By Reema Tendulkar   |  Prashant Nair   |  Nigel D'Souza  March 27, 2026, 12:37:32 PM IST (Published)4 Min ReadPrashant Paroda, Portfolio Manager–Emerging Markets at Allspring Global Investments, says if the situation around the Strait of Hormuz sees some resolution in the next few weeks, equities could rebound sharply, with India likely to benefit the most.

“Maybe it will get resolved in a two to three weeks period, and if that happens, we think the equity markets will rally, and India will be the biggest beneficiary of that,” he said.

At the same time, he flags that things could go the other way if tensions drag on through the summer. But with markets already correcting across sectors, he sees this phase as a selective buying opportunity rather than a time to exit. The way he sees it, a lot of the bad news may already be priced in, and any signs of de-escalation could quickly lift sentiment.

These are edited excerpts from the interview.

Q: You were slightly overweight on India versus the benchmark towards the end of last year, as you wrapped up 2025. Has that view of India changed in light of the conflict and the fact that crude prices are likely to remain elevated for longer than even once the war ends?

A: You can take an optimistic view that the blockade could get resolved in two to three weeks. If that happens, equity markets will rally, and India will be the biggest beneficiary.

Watch the full conversation here

Or you can take a pessimistic view that this will not get resolved through the entire summer. In that case, the only asset that will go up is energy, and even that will rise only until there is demand destruction.

We are still in the optimistic camp. There is a lot of back and forth between Iran and the US, but we will see if, behind the scenes, they are able to reach some agreement. The agreement does not have to be on all issues; it is just on the Strait of Hormuz.

Q: What are you buying now in India if you are taking an optimistic view and believe India will rebound?

A: Everything in India is on sale. You can take your pick. Financials have taken a beating, as some believe this will last longer.

If you have an optimistic view that this could get resolved in three to four weeks, you can pick private sector banks that have corrected. Communication services stocks have also fallen. There is a lot to pick from, given the sharp correction over the last month.

Q: What is your best-case scenario on the geopolitical situation?

A: I think there is more happening behind the scenes than what the headlines suggest. Headlines show no resolution, but I expect some progress. We will know in three to four weeks.

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If this does not get resolved, it is not just an issue for India—it impacts all emerging markets and Europe. Hopefully, better sense will prevail on both sides.

Q: Could equities as an asset class be shunned globally, given inflation and a tighter central bank stance?

A: That would require the blockade to continue for a long time, which I do not see. Even Iran depends heavily on oil revenues and is already dealing with high inflation.

Over time, the world, including China, which depends on crude from the Strait of Hormuz, has to come together to resolve this. I remain cautiously optimistic.

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If investors had to panic, it should have been earlier. At current levels, if you hold equities, you need to stay cautiously optimistic about resolution.

Q: The government has cut excise duty on petrol and diesel. Your thoughts?

A: This is a geopolitical issue, not India-specific. The government is trying to cushion the blow for consumers. It is a positive step and signals intent.

Hopefully, the geopolitical situation will also get resolved, and movement through the Strait of Hormuz will normalise.

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