As fears of a full-blown India-Pakistan war are believed to have receded by market analysts, Dalal Street has shifted from anxiety to analysis, focusing on strategic portfolio positioning. Analysts suggest that historical market rebounds after geopolitical events present a 'buy-the-dip' opportunity. Experts recommend focusing on high-quality stocks in sectors like banks, power, and defence, driven by strong growth potential and government capex, while avoiding panic-driven decisions.

Despite recent military actions between India and Pakistan, the Indian stock market has shown resilience, mirroring historical trends where geopolitical tensions lead to only temporary dips. Operation Sindoor, India's recent strike, barely affected the market, which quickly recovered, buoyed by strong financial inflows and robust macroeconomic fundamentals.

Despite market volatility in 2025, some penny stocks in India have delivered substantial returns, with names like Srichakra Cement and Omansh Enterprises soaring. However, experts caution against the high risks associated with these stocks, citing weak financials and poor liquidity. They advise investors to focus on fundamentally strong companies instead of chasing speculative rallies.

Despite the Nifty and Sensex showing positive trends in 2025, the SME sector is struggling, with nearly 80% of stocks trading in the red. This underperformance is attributed to high volatility, weak liquidity, and poor fundamentals, exacerbated by speculative trading. Experts advise caution and a research-driven approach, emphasizing fundamentally strong businesses for potential long-term opportunities.

India's flexible office space market is poised for significant growth, with five major players planning IPOs to raise over Rs 7,000 crore in the next 12-18 months. This surge is fueled by rising demand for flexible workspaces among startups, SMEs, and large enterprises.

GoalFi suggests a balanced investment approach, mirroring an IPL team, with financials as the anchor due to strong credit growth. Consumer-facing sectors lead the top order, driven by demand revival, while manufacturing and capital goods offer mid-overs acceleration. Select digital and tourism themes provide tactical opportunities for match-winning returns, creating a portfolio for diverse market conditions.

InCred Equities suggests a portfolio of mid and small-cap stocks across diverse sectors like chemicals, logistics, and healthcare, presenting significant growth opportunities. Their analysis identifies ten promising stocks, with potential upsides ranging from 10% to nearly 90% for investors seeking substantial returns. These stocks span various industries, including consumer goods and fertilizers.

Despite a 16% drop in the Nifty Microcap 250 index in CY25, institutional investors are increasing stakes in select microcaps, with nine stocks delivering 10–62% returns so far.

FIIs quietly raised stakes in over 400 smallcap stocks last quarter, with 12 turning multibaggers in a year. CarTrade Tech, Kitex Garments, and Shaily Engineering saw sharp FII inflows and triple-digit returns, signaling a shift in institutional appetite for smaller names. Global funds are now chasing alpha where once only retail investors dared to tread.

Indian high net-worth individuals invested in Swiggy, Eternal, and Jio Financial Services during the March quarter. They exited Nykaa and Premier Energies. HNI holdings in NSE-listed firms decreased by Rs 1.02 lakh crore. Nitco Ltd. saw a significant increase in HNI stake. UBS maintains a positive outlook on Indian equities. Foreign institutional investors have been net buyers recently.