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Stock market crash: What it means for your investments and how to reactIndian markets fell as US Iran tensions rose, but experts advise staying calm, maintaining SIPs, diversifying, and focusing on fundamentals for long term stability.By Anshul  March 2, 2026, 3:04:04 PM IST (Updated)3 Min ReadIndian markets slipped on Monday (March 2) as rising tensions between the United States and Iran rattled global investors. If you have been watching your portfolio nervously, experts say there’s no need to panic but it helps to understand how markets react and what you can do to protect your money.

Markets react to uncertainty, not just conflict

Shubham Gupta, CFA and co-founder of Growthvine Capital, explains that markets don’t fear war itself, they fear the unknown.

Historical events, from the Iraq invasion in 2003 to the Russia–Ukraine war in 2022, show a pattern:

Prices of oil and safe-haven assets like gold spike first.

Equities drop as investors sell in fear.

Once clarity emerges, markets often rebound faster than headlines suggest.

The key takeaway: market swings often happen before events, not during them.

Oil and commodities can move your portfolio

Ashish Anand, Partner at Fortuna Asset Managers, notes that sectors linked to crude oil, metals, and exports are most affected during geopolitical shocks. Higher oil prices can increase costs for businesses and slow global trade, which in turn impacts stock prices.

But Anand adds a note: current oil supplies are strong, with strategic reserves and flexible production keeping extreme price spikes unlikely unless conflicts last a long time.

Don’t let foreign flows shake your strategy

Foreign investors often sell in times of global stress, amplifying short-term volatility. Domestic investors, including mutual funds and Systematic Investment Plans (SIPs), act as stabilisers.

Maintaining your SIPs can help ride out market swings while keeping your long-term investment goals on track.

What you should do with your money

As per experts:

Stay calm, avoid panic selling: Knee-jerk reactions often lock in losses.

Keep your SIPs running: Regular investments benefit from rupee-cost averaging.

Invest in quality companies, not just cheap stocks: Look for strong fundamentals.

Diversify across asset classes: Stocks, bonds, and gold can help balance risk.

Think long term: Patience is more valuable than trying to time the market.

Focus on fundamentals, not headlines

Both Gupta and Anand agree: volatility is part of investing.

“Markets stabilise once clarity emerges,” says Gupta.

Anand adds: “Wealth is built through discipline, not reaction. Patience over pace should guide investment decisions.”

Understanding diversification factor

Aditya Agarwal, Co-founder of Wealthy.in, notes that 2025 showed how diversification can fail in practice, even if the intent is sound. Many investors over-weighted mid- and small-cap stocks, which corrected sharply, while large-cap holdings were too light to offset the drag.

Niharika Tripathi, Head of Products & Research at Wealthy.in, adds:

True diversification requires uncorrelated assets. During volatile periods, equities, defensive sectors, and mid-caps often move in lockstep, limiting protection.

Simply adding multiple equity funds or chasing past winners can increase overlap instead of reducing risk. Multi-asset funds, which balance equity, debt, and gold, provide more stability in turbulent times.

In today’s context, with markets reacting to geopolitical events, these lessons are particularly relevant: proper diversification can help investors ride out short-term swings without overexposing their portfolios to risk.Continue ReadingNote To ReadersDisclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.First Published: Mar 2, 2026 2:53 PM ISTTagsindian equitiesinvestmentsmutual fundsShare marketSIP