ICICI Prudential AMC CIO Sankaran Naren warned investors about high oil prices and stretched AI stock valuations. He said, "Investors should focus on margin of safety, diversification and moderate-risk strategies." Naren remains cautious on small-cap stocks and IT, suggesting that people should avoid going all-in on equities during this uncertain time.
ICICI Prudential AMC CIO Sankaran Naren shares his outlook on Indian markets amid elevated oil prices, high US interest rates, geopolitical risks and stretched global equity valuations. Naren warns that expensive AI-linked stocks could face sharp derating, while he remains constructive on banking and insurance. He also explains his cautious view on IT, small and mid-cap valuations, contrarian investing, asset allocation and the role of Specialized Investment Funds (SIFs). With markets facing uncertainty, Naren explains why investors should focus on margin of safety, diversification and moderate-risk strategies rather than going all-in on equities.