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As geopolitical tensions continue to flare between Israel and Iran, experts believe that the Indian stock markets could remain volatile on Monday, April 15. The market is expected to feel a potential impact as investors will continue to monitor the developments between the two countries this week.
Iran-Israel conflict: This video grab shows explosions lighting up Jerusalem sky during Iranian attack on Israel.(AFP) Investors are expected to remain on their toes as they navigate the geopolitical tensions between the two countries after Iran launched an attack against Israel overnight on Sunday.
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Vinod Nair, head of research at Geojit Financial Services told news agency ANI, “The escalating geopolitical tensions in the Middle East, alongside supply concerns, have propelled crude prices upward, impacting overall market sentiment.”
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He said, “Indian markets may consolidate amidst worries over delayed US rate cuts, escalating Middle East tensions driving oil prices up, and subdued Q4 earnings projections.”
Shrikant Chauhan, executive vice president, Kotak Securities told the news agency that the rising tensions between Iran and Israel is “not something positive” for the equity markets, but the rising volitility is “still manageable” if other countries don't get involved.
“It is something not positive for equity markets worldwide. As long it is between Iran and Israel it is still manageable but if other countries join them, then the escalation will be more serious. However, our markets are resilient and can arrest at psychological support level which is at 22000 on Nifty,” Chauhan said.
Read more: ‘Time to defuse and de-escalate’: UN chief condemns Iran's attack on Israel
"This extensive onslaught marks another flashpoint in the Israeli- Hamas conflagration, a significant worsening of the geopolitical situation in general and the Middle East in particular. While World War III is not on the anvil- at least not yet, there is a clear possibility, nay likelihood, of horizontal escalation and retaliatory and even deterrent strikes by Israel" said Dr. Manoranjan Sharma, Chief Economist- Infomerics Ratings, told ANI.
Iran's drone attack on Israel
Iran launched an attack on Israel overnight on April 14 using hundreds of drones and missiles in retaliation for an Israeli strike on the Iranian consulate in Damascus. It is the first time that Iran directly attacked Israel after decades of strained ties between the two countries.
The Israeli military said that more than 300 drones were launched by Iran, making this the single biggest drone attack carried out by a country. The financial repercussions from the attack are deeply felt by Iran, with its national currency, the rail, falling to an all-time low 670,000 per US dollar on Sunday before a slow recovery.
(With inputs from ANI)
