Lates News

Due to escalating Middle East conflicts affecting investor sentiment, the Indian stock market tumbled on Monday, following most Asian markets down. The Indian NIFTY index fell by 2.1% at one point, marking the largest drop in over a month and wiping out gains made since India reached a trade agreement with the United States in February. Indian engineering giant Larsen & Toubro Limited, Reliance Industries Limited, and airline company InterGlobe Aviation Ltd led the decline. Analysts at JM Financial Limited, including strategist Venkatesh Balasubramanian, stated in a report that the escalating Middle East situation is bringing increasing oil risks to the Indian market. Oil marketing companies, paints, airlines, and chemical stocks may face pressure as they could face profit margin pressure due to rising input costs. Given that much of India's energy demand relies on imported oil, rising oil prices could significantly widen its trade deficit and put pressure on the rupee and stock market. JM Financial strategists stated that for every $1 increase in crude oil prices, India's annual import bill would increase by about $2 billion, putting pressure on trade balance.