Indian markets recovered on Monday, but analysts warned that volatility may persist as investors remain cautious amid geopolitical tensions in West Asia and fluctuations in global energy prices. The ongoing conflict continues to weigh on confidence and keep overall risk appetite restrained.Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, says, “Given the complete uncertainty and confusion over the continuation of the war trend, this uncertainty is also reflected in the market. Even seasoned experts lack conviction to advise investors on the right strategy. All that can be said with conviction now is, stay invested and continue with SIPs.” “The sharp bounce of 257 points in Nifty yesterday was mainly triggered by short covering from oversold territory. This bounce is unlikely to sustain, given the sell-off in FIIs that touched Rs 9,366 crore yesterday. In the short term, this selling of FIIs will continue as other markets like South Korea and Taiwan markets are giving better returns to FIIs. More importantly, the earnings growth prospects in these markets look much better compared to the In short, the sustained FII sales are likely to weigh on the markets in the near term.”Foreign portfolio investors (FPIs) remained net sellers during the session, offloading shares worth Rs 9,365 crore. On the contrary, domestic institutional investors (DIIs) provided support to the market by purchasing shares worth Rs 12,594 crore.Wall Street closed sharply higher on Monday, boosted by gains in artificial intelligence-related stocks. Meta Platforms rose after a report indicated the company is preparing for widespread layoffs. Asian markets also opened higher, supported by optimism that a greater number of oil tankers will soon be able to pass through the strategically important Strait of Hormuz. This event boosted confidence after the good performance of Wall Street.Oil prices rose more than 2 percent in early trading Tuesday, reversing some of the losses recorded in the previous session. (Disclaimer: Any recommendations and views on the stock market, other asset classes or personal finance management tips provided by experts are their own. These views do not represent the views of The Times of India)