Vinod Karki, an Equity Strategist at ICICI Securities, highlights that the Nifty index is more resilient to current geopolitical tensions and elevated crude oil prices than many investors perceive. He notes that the market has already adjusted to a potential three to four-month disruption due to the ongoing Middle East conflict, with a total market cap erosion of ₹51 trillion (approximately $615 billion USD), which is about 15% of India's GDP. Karki emphasizes that the Nifty is tilted towards energy suppliers, such as Coal India and NTPC, which benefit from higher energy prices, while oil marketing companies are largely absent from the index. He also points out that a rise in inflation could positively impact nominal GDP growth, which the Reserve Bank of India (RBI) has revised upward to 4.5% to 5% for the coming year. However, Karki warns that small and midcap companies, particularly in textiles and chemicals, are more exposed to crude-linked input costs and may face greater challenges. Despite the Nifty's resilience, he advises investors to focus on largecaps for better earnings visibility and to treat further escalation of geopolitical tensions as a tail risk rather than a base case.