Amidst tension in the Middle East, significant disruptions have occurred in the global economy. With Israel fighting Hamas in Gaza since last year, it sent troops to Lebanon after weeks of airstrikes, further escalating the Iran Israel conflict. The Sensex has seen a sharp hit, forcing stock market investors to worry.
Iran Israel Conflict: Impact on Global & Indian Economy
The impact of Iran Israel conflict on the global market is still unfolding, with the oil prices skyrocketing. The oil prices increased by 2% on Thursday, 3rd October 2024, with Brent Crude hitting $75 and West Texas hitting $72. This is a major concern for an oil-importing country like India, causing inflationary pressure. Chief Investment Strategist of Geojit Financial Services stressed on the stock market investors quoted, ‘“If Israel targets oil installations in Iran, we could see a huge spike in crude prices. This will be particularly damaging for oil importers like India’ The rising prices of crude oil translate to inflated costs for businesses, high transportation costs, and potentially weaker earnings, all of which impact the stock markets.
So, What Should Stock Market Investors Do?
Market experts suggest being more cautious about uncertainty during the Iran Israel conflict. The stock markets Israel & Iran war implies investing in less volatile sectors. It is best to diversify the portfolio to defensive sectors like pharmaceutical and FMCG. Dr. Manoranajan Sharma, the Chief Economist at Infomerics Ratings, shared the broader impacts of the conflict; he stressed Iran’s missile strike and the possibility of Israel’s retaliation that could further intensify the already Middle East war situation. So, the stock market investors must hold their nerves and prepare as the geopolitical situation is more likely to escalate. Investors need to have their nerves and invest in long-cap stocks where the valuation is attractive, as well as safer sectors and commodity-related stocks, as they are more likely to perform better. For more news & updates, keep following Forcenewz.
Also Check: Warren Buffett’s Advice for How to Making Money in the Stock Market – 2024
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