Geopolitical risks

Domestic drivers will support equity markets

The Indian stock markets went through a blip in the last fortnight with a sequence of six losing sessions before a pullback in the benchmark Nifty50 to above the 19,000 level on Friday. The proximate cause was the escalation of the Israel-Hamas conflict, which led to fears of energy-supply disruptions. Prices of crude oil and gas are already up considerably. India’s dependence on imported crude oil and gas is well known. Higher prices would inevitably lead to a wider current account deficit and higher inflation. Since global economic growth is likely to remain subpar and most nations are suffering from