The conflict between Israel and Hamas, though not causing panic selling in global markets, including the iconic Dalal Street, has certainly drawn attention to several Indian companies operating in Israel.
Indian Companies in Israel’s Spotlight
Adani Ports, which holds the rights to Haifa Port in Israel, saw its shares plummet approximately 4.89%, settling at INR 789.90 on BSE. The company clarified that the port’s contribution is a meager 3% to its total cargo volume.
Shares of Sun Pharmaceutical, which holds a majority stake in Israel’s Taro Pharmaceutical, dipped about 0.70%. Other pharmaceutical giants like Dr. Reddy’s, Lupin, and Teva are under investors’ scrutiny due to potential impacts in the region. According to Bloomberg data, NMDC, Titan, and Kalyan Jewellers also have ties to Israel. Reports suggest that prominent IT firms like Infosys, Wipro, Tech Mahindra, TCS, along with Larsen & Toubro and SBI, maintain a presence in Israel.
Furthermore, the Middle East conflict is negatively affecting oil marketing companies. Retailers might struggle to manage the rising crude oil prices this year, especially with the approaching state and national elections. Shares of railway-associated companies like Jupiter Wagons, RVNL, Ircon, and IRFC have seen a decrease of 5-6%. This drop is due to concerns that the war might impact India’s plans for a Middle East-Europe economic corridor, as announced at the G20 summit. Shares of the Shipping Corporation saw a decline of about 2.10%, closing at INR 144.30.
Market Sentiments Amid the Crisis
The geopolitical uncertainties in the Middle East combined with high crude oil prices introduce another layer of uncertainty for investors. Raj Vyas, Deputy Research Head at Bullish Consultancy, opined, “As far as the Indian stock market is concerned, there’s no immediate cause for alarm. However, performance will depend on global market trends.” He emphasized that while the Israel-Hamas situation is concerning, it’s crucial to observe the situation for a few more days before reacting.
While the Israel-Hamas conflict has ripple effects on global markets, Indian companies, particularly those with operations in Israel, need to be watchful and strategize accordingly.
