US-Iran war: The Indian stock market benchmark indices Nifty 50 and Sensex are likely to open sharply lower on Monday following a dramatic escalation in West Asia that has unsettled global markets. A coordinated military strike by the United States and Israel on Iran has significantly intensified geopolitical tensions, further denting already fragile investor risk appetite.
According to media reports, the joint operation led to the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, who had been at the helm of the country for more than three decades.
Iran has responded with significant force, reportedly launching missile and drone strikes against Israel and several Gulf states — including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Kuwait — many of which host US military bases, in retaliation for US-Israel attacks. These rising tensions have raised fears of a wider regional conflict and triggered a risk-off mood in global markets.
US-Iran war impact on the Indian stock market
According to Manoranjan Sharma, Chief Economist at Infomerics Ratings, Indian equity markets have already shifted into a risk-off mode.
He added that benchmark indices are likely to open in the red, with heightened volatility as investors reevaluate geopolitical developments and commodity-linked risks.
Sharma said a near-term correction of around 1–1.5% cannot be ruled out, with sectors such as automobiles, financials, and FMCG likely to face selling pressure. Meanwhile, IT firms and certain export-driven companies could see relative resilience, supported by global risk aversion and a stronger US dollar.
Meanwhile, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, expects the immediate impact to be negative.
He noted that the medium-term trajectory of the market will hinge on the duration of the conflict, which remains uncertain. According to him, after severely weakening Iran, the US and Israel could opt for a strategic pullback, but the market’s initial reaction is likely to be sharply negative. In a subdued market environment, he added, upstream oil companies and defence stocks are likely to outperform.
Stocks to remain in focus today amid US-Iran war
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, these six stocks will remain in focus on Monday amid the ongoing US-Iran war:
Adani Ports
The market expert said that the Adani Group company owns a stake in Haifa Port, Israel.
Sun Pharmaceutical
The pharma company has a majority stake in Taro Pharma, Israel
Asian Paints and Berger Paints
Both the companies will remain in focus in Monday’s session as both may be impacted by rising crude oil prices
Apollo Tyres and Balkrishna Industries
According to Srivasatava, both tyre manufacturers may face pressure from crude-based inputs.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
