Due to the ongoing conflict between Israel and Hamas, the Indian stock market has been spooked to an extent as the experts are claiming that any escalation could further impact the Indian economy. Since Israel declared war against Hamas, people have been curiously taking over the internet and searching how the Israel-Hamas war can hurt the Indian economy. In what ways the prolonged war between the Middle Eastern countries is negatively impacting the broader Indian economy? However, it can not be ruled out that the Israel-Hamas war is not impacting the domestic market, it has thrown a shadow of uncertainty over geopolitical stability. Let’s delve deep into the details and analyze how this conflict between Israel and Palestine is hurting the domestic market stock investors. Keep reading this article and go through it till the end.
Not only the global economy is getting affected by this development, but the Indian economy also has been shadowed by several uncertainties. Crude Oil prices are hurting all the economies around the world including the broader Indian economy. Nobody is unversed by the fact that the immediate impact of this conflict is the increased price of crude oil. Kindly note that India is the world’s third-largest importer of crude oil thus the Israel-Hamas war is severely hitting the Indian economy. When oil prices increase, it eventually leads to higher prices for everything. Thus, the war between Israel and Hamas is not good news for India which relies heavily on crude oil imports. In fact, the escalating tensions in the Middle East can also trigger inflation and slow down the growth rate of the Indian economy. Swipe down the page and read more details.
Director of Master Capital Services Ltd, Palka Arora Chopra said, “Increasing geopolitical risk in the Middle East could raise oil prices. This could have a lasting and significant impact on oil markets, potentially resulting in a sustained reduction in oil supply. A surge in crude oil prices could affect domestic inflation and may lead to prolonged elevated interest rates.”
As a senior market analyst at APAC at Vantage, Jayden Ong reflected on Chopra’s opinion and said “Presently, there is a prevailing concern within the financial markets regarding the potential protraction of the ongoing conflict, leading to sustained upward pressure on crude oil prices.” The equation is simple to understand, higher crude oil prices will have a negative impact on the Indian market.