Benchmark Indian equity indices closed significantly low on Monday due to increased geopolitical conflict between the US and Iran, which triggered the weaker global cues.The Sensex plummeted 1,048.34 points to end at 80,238.85, while the Nifty 50 dropped 313 points to close at 24,866, below the 24,900 level.Amandeep Singh Uberoi, Founder and CIO Creencia Consulting, said these developments could mark the beginning of a sustained period of elevated volatility rather than a one-off reaction. In such environments, purely long-only strategies often struggle, as sharp swings, sector rotations, and correlation spikes reduce the effectiveness of directional bets.“For investors, this is a timely reminder of the importance of diversification beyond traditional long-only portfolios. Allocating to risk-managed, hedged, and non-directional strategies can help navigate drawdowns while seeking consistent returns across cycles. India’s structural growth story remains intact, but disciplined capital allocation and strategy diversification will be critical in navigating the months ahead,” Uneroi said.Rajesh Singla, CEO and Fund Manager, Alpha AIF, said the 2,000-point correction in Indian markets on Monday following the escalation between Israel and Iran is a classic geopolitical risk repricing event rather than a structural breakdown of India’s growth story. Markets are forward-looking, and what we are witnessing is a sharp but sentiment-driven recalibration of risk premiums particularly linked to crude oil volatility, currency pressure, and potential global capital flight toward safe havens.“Historically, such geopolitical shocks create three immediate pressure points for India: elevated crude prices, FII outflows, and short-term currency weakness. Given India imports nearly 85 per cent of its crude oil requirement, sustained oil above comfort levels could widen the current account deficit and temporarily strain inflation management,” Singhla added.Krishna Patwari, Founder and Managing Director of Wealth Wisdom India Pvt Ltd (WWIPL), said the escalating tensions between Israel and Iran have triggered a sharp risk-off sentiment across global markets, leading to a steep correction in Indian equities.“The spike in volatility, deeper cuts in mid and small caps, rising crude oil prices, weak global cues, and increased allocation toward safe-haven assets like gold have intensified pressure on equities. While such geopolitical shocks create short-term turbulence, investors should avoid knee-jerk reactions,” Patwari added.Karan Rijhsinghani, Director and Head – Product and Advisory, Atom Privé Financial Services, said the sharp sell-off in Indian equities over the past few sessions are a direct reflection of heightened global risk aversion following the escalation of conflict involving the US, Israel and Iran.“From a market standpoint, such reactions are typical of geopolitical risk events — crude oil supply concerns, potential disruptions around the Strait of Hormuz, and currency depreciation all feed into a broader risk-off move across global and domestic indices. The Indian rupee also weakened to multi-week lows as foreign capital rotated toward safer assets,” he added.Riyank Arora, Associate Vice President – HNI and Derivatives, Hedged.in, said the sharp 2,000-point decline in the Sensex amid escalating Israel-Iran tensions triggered panic-led selling; however, from a technical perspective, the fall has brought the index into a crucial support zone. Sensex tested the major support around 78,500 and witnessed a sharp intraday rebound, indicating strong buying interest at lower levels.“This phase should be viewed as a structured accumulation opportunity rather than a structural breakdown. Investors should look to buy slowly and steadily with staggered allocation,” Arora added.