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  5. Iran-Israel conflict intensifies: Know sectors and stocks that are likely to get impacted

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Iran-Israel conflict intensifies: Know sectors and stocks that are likely to get impacted

Upstox
By Upstox News Desk

2 min read | Updated on October 04, 2024, 17:48 IST

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SUMMARY

The ongoing conflict between Iran and Israel has sparked concerns of a widespread regional war. As a result, certain sectors and stocks that have presence in the region are likely to get impacted. Sectors like Oil & Energy, Paints, Tyres, and Pharmaceutical companies are likely to react to developments in the Middle East.

Stock list

HINDPETRO
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ASIANPAINT
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SUNPHARMA
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KALYANKJIL
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KRBL
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Iran-Israel conflict intensifies; stocks and sectors that are likely to get impacted.

Iran-Israel conflict intensifies; stocks and sectors that are likely to get impacted.

Markets worldwide are closely tracking the ongoing conflict in the Middle East. Recent developments between Iran and Israel have sparked concerns regarding a widespread regional war. As a result of the ongoing geopolitical tensions, benchmark NIFTY50 index has tumbled over 4.45% this week, recording its biggest weekly fall since June 2022.

Amid ongoing conflict here are certain sectors that are likely to be impacted:

Oil & Energy

The Iran-Israel conflict has resulted in crude oil prices climbing higher. Higher crude oil prices impact several sectors directly or indirectly and could also result in an energy crisis for India. Oil Marketing Companies (OMCs) are negatively impacted due to higher crude oil prices. Stocks such as Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation (IOC) will be in focus.
Also Read: Bajaj Finance Q2FY25 busienss updates

Paint and Tyre

Paint and tyre sectors are also likely to be impacted as the Middle East conflict intensifies. Higher crude oil prices negatively impact paint and tyre stocks as petroleum-based raw materials are crucial for these sectors. Paint stocks such as Asian Paints and Berger Paints, and tyre stocks such as Apollo Tyres and Balkrishna Industries will be in focus.

Pharmaceutical companies

Although the conflict has not had a direct impact on India’s pharmaceutical companies, further intensification of the conflict can negatively impact companies that have a presence in the region. Sun Pharmaceuticals, Dr.Reddy’s, and Lupin are some of the companies that have a strong presence in Israel.

Gems and Jewelry

Several Indian companies are connected to Israel’s diamond industry. Mining companies like NMDC, along with jewelry companies like Kalyan Jewellers, and Titan are likely to be impacted by the ongoing tensions.

Rice exporters

Iran accounts for a sizable amount of aromatic rice exports from India at 13%. Escalation in the ongoing conflict has resulted in rice companies fearing of shipment slowdowns and delayed payments. Stocks like KRBL and Kohinoor Foods will be negatively affected due to further tensions.

Along with these sectors, there are other companies that will likely be in focus such as Adani Ports which holds a considerable stake in Israel’s Haifa Port. IT stocks such as TCS, Wipro, Tech Mahindra, and Infrastructure companies like Larsen & Toubro might also be impacted.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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