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India Gazette
a day ago
- Business
- India Gazette
Indian stock market closes in red but recovers from early trade amid Israel-Iran conflict
Mumbai (Maharashtra) [India], June 13 (ANI): The Indian stock market recovered during the day trade from its opening. Both Sensex and Nifty opened over 1.5 per cent down but closed a little over 0.6 per cent down. The stock market sheds gains of last week; broader markets are also seen underperforming. The stock market shed gains of last week and broader markets were also seen underperforming. At the end of today's trading session, the BSE Sensex ended at 81,167.35, declining 524.62 points or 0.64 per cent, while the Nifty 50 declined 152.20 points or 0.61 per cent to 24,739.60. In today's session, except for the media, realty, all other sectoral indices at the National Stock Exchange (NSE) ended in the red, with FMCG, PSU Bank, oil & gas, power, and telecom down 0.5-1 per cent. The BSE midcap and smallcap indices also ended in the red. According to the market analysts, Israel's military actions against Iran have heightened concerns over stability in the Middle East, a region crucial for global oil supply, impacting investment sentiment in the market. Naveen Vyas, Senior Vice President of Anand Rathi Global Finance, attributed the fall in Indian stocks primarily to geographical tensions in the Middle East. 'Since India relies on imports for over 80 per cent of its crude oil needs, a conflict between Iran and Israel could lead to a spike in Brent crude prices. Iran holds about 9 per cent of the world's oil reserves, and any disruption could impact several key Indian sectors, including oil marketing companies (such as BPCL, HPCL, and IOC) and paints (like Asian Paints and Berger Paints), as well as the automobile and cement industries,' said Vyas. He said these sectors may experience demand slowdown or margin pressure if tensions escalate and persist for more than 3-6 months, particularly if Brent crude prices rise above the USD 82-85 per barrel mark. The conflict has resulted in a sharp rise in Brent crude oil prices, which spiked to over USD 75 per barrel. 'This surge raises concerns about inflation and increased input costs for businesses, particularly in energy-intensive sectors,' said Vinit Bolinjkar, Head of Research - Ventura. Bolinjkar said that in response to the heightened risks, investors have shifted their portfolios towards safer assets like gold and government bonds, leading to a sell-off in equities. 'The index is likely to continue its range-bound move between the 24500 and the 25200 levels until a significant break of one of these levels is seen,' said Dr Praveen Dwarakanath, Vice President of Hedged in. Vinod Nair, Head of Research, Geojit Investments Limited, said Indian equity benchmarks experienced downward pressure, driven by weak global cues and foreign institutional outflows. 'Although India's CPI for May eased below the RBI's comfort threshold--offering a positive macro signal--this was largely overshadowed by external headwinds,' he added. (ANI)
Time of India
a day ago
- Business
- Time of India
Israel-Iran tensions impact: Brent crude prices surge past $75; OMC stocks like IOC, BPCL crash up to 6%.
Oil prices rose after Israel's military action against Iran, intensifying the Middle East's geopolitical instability. (AI image) Oil marketing companies' (OMCs) shares declined significantly on Friday, with Brent crude futures climbing by $6 to $75.36 per barrel, reaching peak levels in months. Oil prices rose after Israel's military action against Iran, intensifying the Middle East's geopolitical instability. The situation has sparked worries about possible interruptions to worldwide oil distribution, particularly affecting crucial pathways such as the Strait of Hormuz. OMC share prices reflected the impact, with Indian Oil Corporation (IOCL) decreasing by 3.9% to Rs 137.40, Bharat Petroleum Corporation (BPCL) falling 6.1% to Rs 299.20, and Hindustan Petroleum Corporation (HPCL) reducing by 5.3% to Rs 371.35. The Israeli administration verified early on Friday its execution of airstrikes against Iran, with reports of explosions in Tehran. These military actions were conducted as part of Israel's strategy to target Iran's nuclear facilities and missile development capabilities. Iranian news outlets reported increased security measures as tensions rose, leading to growing concerns about potential military conflict escalation. Naveen Vyas, Senior Vice President, Anand Rathi Global Finance says, 'Since India relies on imports for over 80% of its crude oil needs, a conflict between Iran and Israel could lead to a spike in Brent crude prices. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why Didn't Anyone Tell You About This Power Saver? elecTrick - Save upto 80% on Power Bill Pre-Order Undo Iran holds about 9% of the world's oil reserves, and any disruption could impact several key Indian sectors, including oil marketing companies (such as BPCL, HPCL, and IOC), paints (like Asian Paints and Berger Paints), as well as the automobile and cement industries. ' 'These sectors may experience demand slowdown or margin pressure if tensions escalate and persist for more than 3–6 months, particularly if Brent crude prices rise above the USD 82–85 per barrel mark,' he adds. The Israeli strike has triggered widespread effects across global energy markets, causing oil prices to rise as traders factor in additional risk. As previously reported by ET, Saul Kavonic, senior energy analyst at MST Marquee, said "The Israeli attack on Iran has heightened the risk premium further." Kavonic observed that whilst immediate disruptions to oil supply are not expected, the current geopolitical tensions have raised worries about possible Iranian counter-actions against regional oil facilities. He additionally cautioned that should the situation worsen, leading Iran to target oil infrastructure or restrict oil movement through the Strait of Hormuz, this could put approximately 20 million barrels of daily oil supply at risk, leading to increased instability in worldwide oil markets. Oil Marketing Companies are expected to experience considerable market fluctuations, as changes in international oil prices directly affect their operational profits and financial performance. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
