How Can US Iran War Impact Defence and Oil Sectors and the Stock Market on Monday
As we know, the US Iran war impact may affect defence and oil sectors on Monday. The United States and Israel launched a joint military assault on Iran on Saturday, causing tensions in West Asia and raising global geopolitical risks. According to media details on this, in this attack the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, who ruled the nation for over three decades
In response, Iran launched counter missile strikes directed at Israel and multiple Gulf nations, including Saudi Arabia, Bahrain, Qatar, Kuwait, and the United Arab Emirates, which are home to significant U.S. military bases, adding to growing instability in the region, as per reports.
Rising conflict in West Asia has created some concerns that the US-Israel offensive against Iran may evolve into a broader regional crisis, threatening global oil supplies and increasing energy market volatility.
This had created concerns among stock market investors and traders about the impact of this conflict on the Indian stock market on Monday and upcoming days. Market experts expect sentiment in the market to remain subdued amid continuing geopolitical tensions in the Middle East.
How US Iran War Could Affect the Indian Stock Market and Key Sectors
According to Chief Economist at Infomerics Ratings Manoranjan Sharma, the stock market in India has become cautious due to rising tensions.
He simplified that the Indian indices are majorly expected to open lower, along with increased market volatility as investors review global and oil-related risks.
As they said that a short-term market fall can be seen of around 1–1.5%. Mainly Sectors like automobiles, banking and financial services, and FMCG may face selling pressure. However, IT companies and some export-focused businesses could perform better due to global uncertainty and a stronger US dollar,” Sharma said.
Meanwhile, V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the immediate impact of the ongoing conflict is expected to be negative for the markets.
According to him, the medium-term trend will largely depend on how long the tensions continue. “If the conflict drags on, markets could see deeper selling pressure. However, if the US and Israel decide to step back after meeting their strategic goals, the reaction may stabilize. In a weak market scenario, upstream oil producers and defence-related stocks are likely to remain relatively strong,” Vijayakumar noted.
Sectors in focus on Monday amid the US-Iran war
Oil and Energy Sector
Companies such as Reliance Industries, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, and Indian Oil Corporation may remain in focus amid volatile crude oil prices. Any sharp movement in global oil rates due to the US-Iran conflict could directly impact refining margins and fuel marketing companies.
Gold and Financial Services Sector
Safe-haven assets like gold may attract investors during global uncertainty. Companies such as Titan Company and Muthoot Finance could benefit from rising gold demand and increased investment in defensive assets.
Defence Sector
Defence-related companies like Bharat Electronics Limited, Hindustan Aeronautics Limited, and Bharat Dynamics Limited could see increased investor interest. Rising geopolitical tensions often boost expectations of higher defence spending and stronger order inflows.
Aviation and Logistics
Airlines like InterGlobe Aviation, which operates IndiGo, along with logistics companies, may come under pressure due to rising aviation fuel costs and higher freight expenses if crude prices surge further.
Textiles and Pharmaceuticals
Export-oriented sectors such as textiles and pharmaceuticals may face short-term challenges if global supply chains are disrupted. Currency volatility and logistical delays could impact margins and shipment timelines.
