How the Israel-Iran Conflict is Impacting Indian Stock Markets

Market Reactions to Rising Oil Prices

New Delhi: Shares in sectors sensitive to crude oil, including oil marketing firms, aviation, and paint manufacturers, saw a decline on Monday morning. This drop follows a surge in Brent crude oil prices amid escalating tensions between Israel and Iran.

Bharat Petroleum Corporation Ltd's stock fell by 1.54%, while Indian Oil Corporation and Hindustan Petroleum Corporation Ltd saw declines of 1.22% and 1%, respectively, on the Bombay Stock Exchange.

In the aviation sector, SpiceJet's shares decreased by 2.47%, and InterGlobe Aviation's stock dropped by 2.24%.

The United States has targeted three significant nuclear facilities in Iran—Fordow, Natanz, and Isfahan—intensifying its involvement in the Israel-Iran conflict.

In the paints sector, Kansai Nerolac Paints experienced a 3% drop, Berger Paints fell by 2%, Asian Paints decreased by 1.38%, and Akzo Nobel India saw a decline of 0.42%.

Brent crude, the global oil benchmark, surged by 1.96% to reach USD 78.52 per barrel.

The 30-share BSE Sensex plummeted by 840.49 points, settling at 81,567.68 during morning trading, while the 50-share NSE Nifty fell by 253.65 points to 24,858.75.

Following Israel's military actions against Iran, global oil prices have surged to their highest levels since January, reflecting a significant escalation in Middle Eastern tensions.

India relies on imports for over 85% of its crude oil and about half of its natural gas, with more than 40% of oil imports and half of gas imports sourced from the Middle East.