The escalating tensions between Iran and Israel are casting a shadow over several Indian companies, spanning various sectors, as fears of a broader conflict in the Middle East intensify.
The retaliatory attack by Iran against Israel over the weekend triggered a sharp downturn in global markets, including India's Dalal Street. Despite recent record-breaking rallies, India's benchmark indices, Sensex and Nifty, experienced significant declines on Monday, struggling to maintain momentum.
A range of companies across sectors such as IT, exports, pharmaceuticals, banking, and more could be adversely affected by the geopolitical tensions. Specifically, companies like TCS, Infosys, Adani Ports, Sun Pharma, Lupin, State Bank of India, Wipro, Tech Mahindra, NMDC, Kalyan Jewellers, Titan, and Larsen and Toubro (L&T) are among those with operations in Israel.
In addition to these, stocks of companies exporting Basmati Rice and tea are also under scrutiny amid the conflict. Countries like Iran, Israel, and neighboring regions are significant consumers of Basmati Rice, and any escalation in the conflict could impact India's exports to these regions.
Tea exporters, particularly those eyeing expansion in Iran, are closely monitoring the situation, fearing that heightened conflict could derail their efforts to boost exports to the country.
Analysts caution that any escalation in the ongoing conflict may trigger a knee-jerk reaction in the market. They emphasize the importance of assessing the situation attentively and remaining vigilant amidst the uncertainty.
