Live Updates on the Israel-Iran War News: Israeli planes hit “military sites” in Iran, causing at least seven explosions in Tehran and adjacent Karaj about 2:30 a.m. local time on Saturday. It’s yet unclear if more attacks are expected.
Live News on the Israel-Iran War: In reaction to an earlier ballistic missile attack, Israel declared early Saturday that it had carried out “precise” attacks on Iranian military targets, namely those connected to the Islamic Revolutionary Guard Corps. There were many reported explosions in Tehran.
Due to the war between the Israel and Iran, the prices of crude oil may increase because Iran is a major oil producer but besides this it also effect Indian stock market , because every thing is connected in this modern globalize world.
INDIAN STOCK MARKET
If we talk about the Indian stock market, the stock are already traded below it’s premium value due to a prolonged conflict between Israel and Iran . A prolonged conflict prompt global investor to shift there focus away from India , which was also currently one of the top performing equity market now in this situation the investors might move there capital from risker assets like Indian equities into safer havens like US bonds or gold.
The Israel and Iran conflict has already spilled over to dalal street as we speak with the bench mark indices already down by more than almost 8% since last 4 weeks as far as equities are concerned so far this year the foreign portfolio investment inflows into Indian equities e3xceed 1 lakh crore rupees, it indicating global investor confidence in the economy now even though stock valuations relatively high but already experts warn that the trend reverse in the month of September as tension in the middle east intensity adversely effecting global trade dynamics and crude oil prices.
Equity market depend heavily on geopolitics would want to rush to safer assets than making money in some cases they would want to rush to more return generating ones too.
As we seen already when major equity markets reacted positively to the US FED decision to cut interest rates in September which was soon followed by highly anticipated measures from china now these actions boosted investors confidence prompting a surge in risker assets such as equities but the middle east are beginning to cast the shadow over global investors sentiment and could influence the direction of major central banks future policies this would impact central banks of emerging economics like India where RBI might want to continue to wait and watch approach as far as cutting rates are concerned the market could rise signification if the conflicts escalates further.
GOLD
The gold prices have reached multiple peaks this year out performing all safest assets also fins huge buying demand in India during the festive season which is beginning now if the war prolongs the demand for gold globally rise and this would impact the prices as we speak 78760 rupees on per gram gold .Now, the prices rises by 1500 rupees per 10 gram compared to yesterday. Now the combination of geo political risk and economies uncertainty may force central banks to re4think their strategies potentially delaying further rate cuts. Gold prices might also rise and this would be special care for India is one of the largest importer of gold this would again add the current account deficit of the country. Now on one hand we have got Indian equities and on the other hand we have gold both of these commodities on Indian economy in case the war in middle east is pronged
