Indian shares set for steep drop as widening Mideast war drives oil spike Indian stock markets are expected to experience a sharp decline on Monday as rising oil prices, fueled by escalating tensions in the Middle East, threaten to strain the economy, inflation control, and the rupee. The surge in crude oil costs is likely to increase import expenses for the world’s third-largest oil importer, while also raising concerns about fiscal stability and inflationary pressures. Oil prices surged by around 26% in early trading, reaching their highest level since July 2022, which has triggered fears of prolonged supply disruptions. The widening conflict between the U.S., Israel, and Iran has heightened anxieties over the Strait of Hormuz, a critical shipping route for global oil exports. This has led to a broad sell-off across global markets, with Asian stocks falling 4.8% and Wall Street and European futures also declining. Safe-haven demand has kept the U.S. dollar strong amid the uncertainty. The Nifty 50 index, a key benchmark for Indian equities, is projected to open 2.8% lower, based on GIFT Nifty futures trading at 23,760. This would mark a significant drop from Friday’s close of 24,450.45. The conflict has already pushed the Nifty 50 and Sensex to their worst weekly performance in over a year, with both indices losing approximately 2.9% last week. Analysts warn that the Middle East tensions are severely affecting market sentiment, with widespread selling and risk aversion across sectors. Pravesh Gour, a senior technical analyst at Swastika Investmart, noted that the situation is likely to lead to broad-based declines. Persistent foreign investor outflows and a weakening rupee are further compounding the pressure. On Friday, foreign institutional investors sold shares worth 60.30 billion rupees ($653.#strait_of_hormuz #nifty_50 #pravesh_gour #mideast_war #ali_khamenei
