US-Israel-Iran War: How Will Indian Stock Market React?

Amid the ongoing conflict Israel and Iran strikes on Iran, Indian stock market will be in focus, especially how the energy stocks react as Iran remains among the top oil producers in the world.

Israel-Iran War: What Does It Mean For BSE, NSE?

The spike in oil prices usually is indicative of negative start for Indian equities. Analysts expect mayhem ahead of India's stock market exchanges' March 2, Monday, trading session.

Meanwhile, concerns over rising oil prices is likely to impact the auto, and aviation sector. Meanwhile, FMCG, and chemical firms will have to brace for soaring input prices, according to Ankit Yadav, SEBI Registered Research Analyst.

Further, sectors heavily dependent on interest rates, and consumption will face pressure. On the other hand, energy producers, and defence-linked stocks could see investor interest.

Also Read:  Some Oil Majors, Traders Suspend Hormuz Shipments Amid US Attack on Iran

Gold, Silver Prices

Safe-haven demand typically surges during geopolitical crises, and this episode appears no different. Commodity analysts expect bullion to react sharply at the open.

Analysts also expect a "gap-up opening for precious metals.” While rising geopolitical risks could spark a rapid surge in precious metals, experts projected that gold could hit Rs 2 lakh mark depending on how the Israel-Iran-US war shapes out.

Gold has increased by over 20% so far this year, stabilising again above $5,000 an ounce after a sharp decline from a record high in late January.

US and Israel launched a large-scale military strike on Iran on Saturday. In retaliation, Iran deployed missiles and drones toward Israel and also targeted US military bases in Bahrain, Kuwait, and Qatar.

Further, experts noted resistance levels in COMEX gold at $5,300 per ounce, while expecting that a breakout could lift domestic prices to Rs 1,68,000–Rs 1,70,000 per 10 gm.

On Sunday, the price of 24 karat gold per 10 grams in India surged as much as Rs 4,370 to hits Rs 1,73,080.

Coming to silver, a sustained move above $95 per ounce could push prices toward $100.