The increasing tension between Iran and Israel in the Middle East has created a stir in the global markets, and its effect was also seen on the Indian stock market. The Indian stock market Sensex fell by 1,700 points as investors grew concerned about the impact of the war on crude oil prices and global supply chains after Iran fired more than 180 missiles at Israel. Same situation was seen in Nifty also. The impact of this great war has been seen most on 14 big companies of India, which include companies from Adani Group to Tata Group.
Indian companies with a presence in Israel include more than 14 listed companies, for many of which the crisis may have limited impact. A decline was recorded in the shares of some of these major companies. Shares of Adani Ports, which owns Israel's Haifa Port, fell 2.5% and were trading at Rs 1,429.35 on the BSE. At the same time, shares of Sun Pharmaceuticals, which holds majority stake in Israel's Taro Pharmaceuticals, remained stable.
Apart from this, investors were also keeping an eye on major generic drug companies Dr. Reddy's and Lupine as these companies could be affected by Tel Aviv-based pharmaceutical giant Teva Pharmaceutical. Other companies include mining sector's NMDC, and jewelery manufacturers Kalyan Jewelers and Titan also have ties to Israel.
In the information technology sector, investors were also focused on shares of companies with presence in Israel, such as Tata Consultancy Services (TCS), Wipro, Tech Mahindra and Infosys. Apart from this, State Bank of India (SBI) and Larsen & Toubro (L&T) are also present in this sector, whose stock market can also be affected by the crisis.
Israel's subsequent ground attacks on Hezbollah in Lebanon have heightened concerns about disruptions to oil supply chains, leading to increased volatility in global financial markets. Experts say that if Israel targets Iran's oil infrastructure, crude oil prices may increase further. Brent crude futures prices rose more than 1% on Thursday to near $75 a barrel.
Iran said on Wednesday that its biggest missile strike action has ended, but if provocations continue, it may take further steps. At the same time, Israel and America have warned of a strong response. Analysts say investors need to keep a close eye on this emerging situation. Dr. V.K. of Geojit Financial Services. Vijayakumar suggested that shifting the portfolio towards defensive stocks like pharma and FMCG could also be an appropriate move at this time. The impact of this war was also seen on the shares of paint and tire companies that use crude oil. Shares of Asian Paints and Berger Paints fell by 3-4%.
