One of my favourite topics to try and foolishly connect the dots is to study geopolitics. Even if it may or may not affect the short-term complexion of markets. Geopolitics indeed shapes the path that the economy and markets are going to tread in the future.
What happened in the last few years?
For good part of last decade, Geopolitical tensions took a backseat with main themes being trade war rhetoric between US and China, US- Iran, US-Russia and some fun with North Korea.
COVID - the game changer for rising geopolitical tensions
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What felt like a decade of pleasant drizzle suddenly became a thunderstorm with this one once in a century event. Many countries faced economic crisis of epic proportions with lakhs of people dying and most importantly the change in supply chain dynamics.
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Another event which might eventually turn out to be the game changer for this decade’s geopolitical scenario would be the attack that Chinese tried on our soldiers at Galwan valley. That meant a very long term damage in our geopolitical relations. Because of this event, the call to Atmanirbhar Bharat came up and although, there hasn’t been too much of a change when it comes to buying stuff from China, it atleast meant a change in strategy for India.
Russia- Ukraine war
- As if the flaring tensions across the world were not enough, The Ruso-Ukraine war and the consequent events changed the geopolitical scene drastically with world. It changed the scene to such an extent that rich oil producing middle east countries like Saudi, UAE have slowly started drifting away from the US.
What about India?
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This is where things got super interesting. India defied potential western sanctions and not only bought Russian oil for cheap but also resold the same to western economies at a premium.
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If it were any other small economy,the west would have blindly sanctioned that country and destroy it completely in order to restore democratic values there.
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World especially the west began to notice the rise in Indian soft power and are now trying all type of ways to make India their preferred economic and strategic partner. West knows, Only India has the true capacity to contain the rising Chinese influence in the Pacific region.
With PM expected to meet all the eminent personalities like Musk, Taleb, investors like Ray dalio, Scientist Neil degrasse Tyson following by a state dinner with US president and an address to the US Congress.
I think our country is mainly focusing on rapid economic growth this decade and would be willing to partner with any country that supports this cause.
The west is seeing a strategic partner in India while India is currently seeing west as a better alternative to China n Russia when it comes to fueling economic growth.
And yeah …Nifty is at all time highs (just a coincidence maybe who knows 
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Your thoughts on this?