Crude shocks loom on domestic market as US joins Iran-Israel conflict

Indian markets may open lower on Monday due to fears of crude oil disruption from the West Asia though domestic institutional investors may support valuations

Investors may have to brace for heightened volatility on Monday, following the US military’s direct involvement in the Iran-Israel conflict over the weekend.

 

Analysts expect benchmark indices Sensex and Nifty to correct by 1-1.5 per cent if crude oil prices spike and Asian markets react negatively to the escalating tensions in West Asia. However, sustained buying by domestic institutional investors (DIIs) could help cushion the blow. Last week, Indian equities gained over 1.5 per cent despite rising hostilities between Iran and Israel.

 

On early Sunday, US President Donald Trump announced targeted airstrikes on three of Iran’s major nuclear facilities —