“Worst of the War Impact Likely Behind Us,” he said.
Speaking on current market conditions, Kohli said, “We are constructive on the markets at this point. What we believe is that probably the worst of the war-related issues are behind us. Now, of course, how fast it will recover and how soon the war will end, I do not know. I think nobody knows that. But one thing is very clear from the market movement as well as from the news flow—that probably the worst-case scenario which could have played out has already been understood by both parties, and now they are all sitting at the table to discuss the future course.”
He cautioned that resolutions in such situations are rarely quick.
“Normally, these things do not get solved in one or two meetings. They take a long time. There are ego hassles and various issues that need to be sorted out. So, for that period of uncertainty, we will have to bear the volatility.”
Gradual Investment Strategy AdvisedRather than waiting for complete clarity, Kohli emphasized a phased investment approach.“What we believe is that this is probably the right time to start using your money—putting it to use, maybe 15–20% now, and then on bad days or negative news, you can find opportunities and start adding in small tranches. Slowly and steadily, you can build your portfolio.”He also highlighted that the real economic impact of the conflict will unfold over time.
“As of now, we are only analysing the near-term impact of the war. The actual impact will come over the next two to three quarters, when we will understand how each specific company is getting affected—whether due to input costs, demand destruction, or delays in procurement of raw materials. These will reflect in quarter two and quarter three numbers, and that is when sector-specific and stock-specific reactions will emerge.”
Sectoral Bets: Power, AI, and MetalsOn sectoral preferences, Kohli identified power as a clear long-term beneficiary.
“One sector which is a very clear beneficiary of this entire episode is power. Within power, you have a very long value chain—you can play it through renewables, generation, transmission, equipment players, and financers. There are companies available at reasonable valuations.”
He stressed that the push for energy security will sustain the sector’s growth.
“This theme is going to play out for a very long time. Everyone is now clear that we need to create in-house dependency for energy security, and now nuclear power is also being added. Equipment and spare parts producers supplying to this ecosystem will benefit. This is not a one- or two-quarter theme—it is a long-term opportunity.”
Kohli also pointed to emerging opportunities in AI-linked sectors.
“The second theme is AI-related—semiconductors and data centres, along with the accessories that support them. There could be cable manufacturers or EPC players who benefit. We may not have direct plays in the market, but there are indirect ways to participate in these themes.”
Metals, too, could see sustained momentum due to supply disruptions.
“Metals is another segment where there is a lot of disturbance on the supply side, so that may not be a short-term trend.”
Power Lenders Back in FocusWithin the broader power ecosystem, Kohli also spoke about financing companies like Power Finance Corporation and REC Limited.
“These lenders have disappointed in terms of stock performance for quite some time. PFC and REC are the two key names. Now there is some activity around a potential merger of these two.”
While uncertainties remain around the merger structure, he believes valuations are attractive.
“Both of them are available at very reasonable valuations, especially considering that technically there are no NPAs, as they are largely backed by state and central government guarantees.”
He explained the reason behind their subdued performance:
“The problem was that the market was building in a lot of growth in the last year, but their asset books did not reflect that kind of growth. That is why they were trading at subdued valuations.”
However, the outlook could improve with sector momentum.
“Now, with this theme picking up, more project announcements, and increased activity around the merger, these factors should help over time. Ultimately, this segment should also perform. Within the BFSI space, this is one sub-segment where there is still valuation comfort.”
Bottom LineKohli’s message is clear, while uncertainties remain, panic may have peaked. Instead of trying to time the market perfectly, investors should adopt a staggered approach—focusing on long-term structural themes like power and AI while staying mindful of evolving sector-specific risks.
