Indian stocks may be unruffled by Iran reprisal attacks unless Israel responds
NEW DELHI : Iran's reprisal attacks on Israel are unlikely to significantly dent the Indian stock market unless Tel Aviv responds, in which case crude oil prices could spike on supply disruptions, market analysts said on Sunday. Their comments came after the Tel Aviv Stock Exchange's (TASE) benchmark TA-35 index closed up 0.27% at 1938.18 on Sunday despite Iran's overnight drone and missile attacks. The TASE runs from Sunday through Thursday.
On Sundays, it opens at 9:59 am and closes at 3:39 pm, and operates between 9:59 am and 5:14 pm Israel Daylight Time on other days. The Gift Nifty, traded in Gift City, Gujarat, closed last week at 22452.50, indicating a 67-point cut for Nifty at Monday opening from Friday's close of 22519.4. However, the Gift Nifty value will be updated early Monday morning.
"The markets across debt, equity, and gold will be concerned about the escalation in conflict in West East, as it is currently pricing in business as usual with minimal impact," said Nilesh Shah , MD, Kotak AMC. Shah caveated that market concerns would hinge on prices and uninterrupted supplies of crude . Brent oil active futures closed at $90.15 a barrel on Friday.
"Higher energy prices adversely affect inflation, current account deficit, GDP growth, corporate earnings and rupee. Markets will adjust as the situation develops," he added. "If there isn't any escalation, markets will take the latest geopolitical event in their stride," said B Gopkumar, MD & CEO, Axis Mutual Fund.
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