West Asia conflict: Should investors move from equity to gold? G Chokkalingam answers; shares top bets
Highlighting potential investment opportunities, the market expert said domestic hospital stocks could emerge as relatively defensive bets in the current environment
- Mar 12, 2026,
- Updated Mar 12, 2026 8:51 AM IST
Amid escalating geopolitical tensions in West Asia, shifting investments from equities to gold may not be the most favourable strategy, according to G Chokkalingam, Founder and Managing Director of market research firm Equinomics Research.
Chokkalingam said investors often turn to gold during uncertain times, but the yellow metal may also face selling pressure if losses deepen in other asset classes.
"If pain persists, the selling pressure will even come in gold because when people lose money in other asset classes, they'll try to make it up by selling gold. So, if someone is willing to take a little more risk, say 5 to 10 per cent, they should stay invested in equities. In the last 30 years, we have seen a lot of conflicts, but the market has still gone up ultimately. If somebody doesn't want to take any more risk, you can generate cash and sit on bank deposits rather than investing in gold or silver," the market expert told Business Today.
Highlighting potential investment opportunities, Chokkalingam said domestic hospital stocks could emerge as relatively defensive bets in the current environment and named Apollo Hospitals as his preferred pick from the space.
"They have nothing to do with the war, nothing to do with oil. The nature of the business is such that nobody can afford to ignore going to the hospital when there is a need. So this is the most defensive sector at this juncture, and definitely, one should increase the exposure to hospitals. More than that, in the last few years, more than 50 per cent of the FDI into the health sector came to hospitals. Also, we have seen a lot of deals within among the domestic players. So that would be one of the top-most outperforming sectors in the short- to medium-term," he stated.
On Larsen & Toubro (L&T), Chokkalingam said the infrastructure major could face some pressure during the conflict as a significant portion of its order book comes from international markets.
"But first, one has to understand that almost 50 per cent of its total profits are coming from technology and financial sectors. So to that extent, the risk is limited, and secondly, the company is getting into a lot of new verticals, which would also start contributing. Third, you should not ignore the fact that the entire stock market is currently in trouble, not just L&T. So I believe that risk-taking investors should accumulate L&T in a phased manner," he added.
Amid escalating geopolitical tensions in West Asia, shifting investments from equities to gold may not be the most favourable strategy, according to G Chokkalingam, Founder and Managing Director of market research firm Equinomics Research.
Chokkalingam said investors often turn to gold during uncertain times, but the yellow metal may also face selling pressure if losses deepen in other asset classes.
"If pain persists, the selling pressure will even come in gold because when people lose money in other asset classes, they'll try to make it up by selling gold. So, if someone is willing to take a little more risk, say 5 to 10 per cent, they should stay invested in equities. In the last 30 years, we have seen a lot of conflicts, but the market has still gone up ultimately. If somebody doesn't want to take any more risk, you can generate cash and sit on bank deposits rather than investing in gold or silver," the market expert told Business Today.
Highlighting potential investment opportunities, Chokkalingam said domestic hospital stocks could emerge as relatively defensive bets in the current environment and named Apollo Hospitals as his preferred pick from the space.
"They have nothing to do with the war, nothing to do with oil. The nature of the business is such that nobody can afford to ignore going to the hospital when there is a need. So this is the most defensive sector at this juncture, and definitely, one should increase the exposure to hospitals. More than that, in the last few years, more than 50 per cent of the FDI into the health sector came to hospitals. Also, we have seen a lot of deals within among the domestic players. So that would be one of the top-most outperforming sectors in the short- to medium-term," he stated.
On Larsen & Toubro (L&T), Chokkalingam said the infrastructure major could face some pressure during the conflict as a significant portion of its order book comes from international markets.
"But first, one has to understand that almost 50 per cent of its total profits are coming from technology and financial sectors. So to that extent, the risk is limited, and secondly, the company is getting into a lot of new verticals, which would also start contributing. Third, you should not ignore the fact that the entire stock market is currently in trouble, not just L&T. So I believe that risk-taking investors should accumulate L&T in a phased manner," he added.