Indian equities tumbled on Monday, tracking declines across most Asian peers, as escalating conflict in the Middle East dented investor sentiment. The NSE Nifty 50 Index slipped as much as 2.1% — the most in more than a month — erasing gains made after the country’s trade deal with the US in February. Engineering major Larsen & Toubro Ltd. , Reliance Industries Ltd. and carrier InterGlobe Aviation...
Indian equities tumbled on Monday, tracking declines across most Asian peers, as escalating conflict in the Middle East dented investor sentiment. The NSE Nifty 50 Index slipped as much as 2.1% — the most in more than a month — erasing gains made after the country’s trade deal with the US in February. Engineering major Larsen & Toubro Ltd. , Reliance Industries Ltd. and carrier InterGlobe Aviation Ltd. led the losses in the benchmark gauge. “Middle east escalation draws rising oil risk for Indian markets,” JM Financial Ltd. strategists including Venkatesh Balasubramaniam wrote in a note, citing likely pressure on shares of oil marketing companies, paints, aviation and chemicals as they may face margin pressure from higher input costs. Given India’s dependence on imports for most of its energy needs, rising oil prices can significantly widen the trade deficit and weigh on the rupee and equities. A $1 increase in crude prices raises India’s annual import bill by about $2 billion, putting pressure on the trade balance, the JM Financial strategists said. The Middle East conflict is the latest setback for India’s $5.1 trillion equity market , which has lagged most major peers since late 2024, partly due to weaker earnings growth. Lower exposure to artificial intelligence-related stocks, compared with markets such as China, South Korea and Taiwan, also contributed to the underperformance. While local stocks saw some gains following India’s much-awaited trade agreement with the US on Feb. 2, a relentless selloff in information technology shares has continued to weigh on investor sentiment. “Impact on India is typically magnified as higher crude oil prices widen the current account deficit, stoke domestic inflation, pressure the rupee,” said Nachiketa Sawrikar , a fund Manager with Artha Bharat Global Multiplier Fund. This could also lead to foreign outflows as “global investors reduce risk exposure.”
Mukesh Sahdev, founder, CEO, and chief oil analyst at XAnalysts, says the Middle East conflict is effectively over and that oil prices are unlikely to rise above $100 per barrel, as a Strait of Hormuz shutdown is not expected. He notes that the market remains well supplied and expects crude to eventually settle in the $60–$70 range. (Source: Bloomberg)
Mukesh Sahdev, founder, CEO, and chief oil analyst at XAnalysts, says the Middle East conflict is effectively over and that oil prices are unlikely to rise above $100 per barrel, as a Strait of Hormuz shutdown is not expected. He notes that the market remains well supplied and expects crude to eventually settle in the $60–$70 range. (Source: Bloomberg)
The Hang Seng Tech Index has slipped beneath a crucial support line that suggests more selloffs ahead given geopolitical tensions and lingering earnings worries. The gauge that tracks China’s biggest technology companies is down 25% from an October high, and has fallen below the neckline of a classic head-and-shoulders technical trading pattern — widely regarded as a warning of further drops. Once...
The Hang Seng Tech Index has slipped beneath a crucial support line that suggests more selloffs ahead given geopolitical tensions and lingering earnings worries. The gauge that tracks China’s biggest technology companies is down 25% from an October high, and has fallen below the neckline of a classic head-and-shoulders technical trading pattern — widely regarded as a warning of further drops. Once the neckline is breached, it implies that sellers have gained the upper hand, raising the risk of further declines. Declines in the Chinese tech-stock benchmark have accelerated in recent weeks as worries over those companies’ profitability increased due to heavy spending and fierce competition among the country’s AI app developers. Quarterly results from JD.com Inc. and Bilibili Inc. due Thursday will test sentiment. Monday’s drop also briefly took the index below the closely watched 5,000 level. Earlier, Chinese Tech Shares Cap Worst Month Since 2024 on Earnings Fears
Bloomberg's Minmin Low explains the reasons for China's opposition to US and Israeli strikes on Iran, and lays out how recent events may affect the upcoming summit between Xi Jinping and Donald Trump. (Source: Bloomberg)
Bloomberg's Minmin Low explains the reasons for China's opposition to US and Israeli strikes on Iran, and lays out how recent events may affect the upcoming summit between Xi Jinping and Donald Trump. (Source: Bloomberg)