The Indian stock market has entered 2026 amid heightened volatility, leaving investors uneasy as multiple developments unfold almost simultaneously. From headlines around the India–US trade deal and India–EU FTA to the Union Budget 2026, a sharp correction in gold and silver prices, and a sudden sell-off in IT stocks, market sentiment has been tested on several fronts at once. In such uncertain phases, investors often make the costly mistake of reacting to short-term market movements, reshuffling portfolios based on fear rather than long-term fundamentals.
Despite the noise, market cycles remain unchanged. Corrections follow rallies, optimism gives way to caution, and volatility is a natural feature of equity investing. According to Sebi-registered research analyst Ankit Yadav, recent events must be viewed with perspective rather than panic. He believes the impact of trade agreements and policy announcements will only be clear over time and that fears around IT stocks and AI disruption are being overstated, as Indian technology companies continue to adapt and invest in new capabilities.
Yadav strongly advises investors against resetting their mutual fund portfolios based on short-term news flow. He explains that long-term investment strategies should only change when there is a fundamental shift in business economics or personal financial goals, not because of temporary market swings or headline-driven anxiety. Instead of chasing recent performers or exiting during corrections, investors should focus on diversification, consistency, and quality.
Highlighting opportunities within the current market structure, Yadav points out that mid-cap and small-cap stocks have corrected more sharply than large-cap indices, creating attractive entry points for long-term investors. He recommends maintaining a balanced allocation across market capitalisations while being cautious about sector-specific thematic funds due to concentration risk. On global investing, he urges moderation, noting elevated valuations and policy uncertainty in the US markets, while advocating a stronger focus on domestic growth themes in India.
The article also outlines practical guidance on allocating to gold and silver through ETFs, managing liquidity during volatile phases, and tracking key macro factors such as interest rates, global liquidity, oil prices, and the monsoon. Ultimately, the message for investors is clear: volatility is not the real risk — losing discipline is. By staying invested, maintaining asset allocation, and resisting emotional decisions, investors can position their portfolios for resilience and long-term wealth creation even in uncertain market conditions.
