Indian benchmark equity indices, the BSE Sensex and NSE Nifty, experienced a significant drop in early trade due to elevated oil prices, weak global market trends, and renewed fears of military operations in the Middle East following US President Donald Trump's statements regarding Iran. Track Sensex, Nifty on May 20.
Moody's Ratings has downgraded India's growth forecast for financial year 2026-27 (FY27) to 6 per cent from 6.8 per cent, attributing the revision to weaker consumption and industrial activity, elevated energy prices, and rising input costs stemming from the West Asia conflict.
India is significantly expanding its crude oil sourcing to Latin America, with Venezuela emerging as a major supplier, as geopolitical disruptions in the Middle East and the Strait of Hormuz compel the world's third-largest oil consumer to diversify its energy supplies.
India's foreign exchange reserves have surged by $3.825 billion to reach $700.946 billion as of April 10, marking a significant milestone for the country's financial stability.
India has expressed firm opposition to attacks on merchant shipping amidst the ongoing Iran conflict, revealing that several Indian nationals have died or are missing due to these incidents. The nation also called for restraint, de-escalation, and prioritising civilian safety in the region.
India's foreign exchange reserves increased by USD 7.26 billion to USD 674.193 billion for the week ending July 3, as reported by the Reserve Bank of India. This surge follows a previous week's drop and comes after Prime Minister Narendra Modi's appeals to conserve forex.
The government has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed following a ceasefire.
Lieutenant General Apti Alaudinov, deputy chief of the Russian Armed Forces' Main Military-Political Department, has warned that the escalating conflict in West Asia could lead to Israel ceasing to exist as a state, accusing Israel of seeking to widen the confrontation to involve the US and NATO.
The Qatar Grand Prix scheduled for next month has been postponed to November due to the conflict in the Middle East, MotoGP announced on Sunday.
US President Donald Trump has announced the cancellation of a planned attack on Iran, contingent on Tehran agreeing to rapidly open the Strait of Hormuz and end its nuclear programme. This decision follows appeals from Middle Eastern countries and includes Israel's commitment, though Iran had previously warned against any "adventurous action" from the US.
Russia has expressed strong concern over a US-Israeli strike on the Iranian port of Bandar Anzali, a key transit hub on the INSTC, warning of the risk of drawing Caspian states into the ongoing conflict.
While the West Asia conflict has led to a drop in patient footfalls, hospitals are seeing higher realisations as international patients increasingly travel for complex, high-end procedures.
India's services sector growth reached a five-month high in April, with the HSBC India Services PMI Business Activity Index rising to 58.8, primarily driven by robust domestic demand and a shift from international to local suppliers amidst the West Asia crisis.
China's Foreign Ministry has refuted allegations of providing military support to Iran, warning the US against imposing tariffs based on these accusations. The statement follows reports of Iran acquiring a Chinese satellite for targeting US military bases. Meanwhile, a rescheduled meeting between Presidents Trump and Xi Jinping is set for May.
'Refiners may soon be forced to adjust operations, curtailing runs as product exports stall and directing output solely to domestic markets.'
US Special Representative Sergio Gor met with Sri Lankan President Anura Kumara Dissanayake to discuss strengthening bilateral relations and Sri Lanka's stance on the Middle East crisis. The visit occurs amidst regional tensions and US efforts to secure trade routes in the Indo-Pacific.
On Monday, March 9, Mojtaba Khamenei was appointed Iran's new supreme leader, succeeding his father Ayatollah Ali Khamenei.
India's manufacturing sector growth slowed to a four-year low in March, impacted by cost pressures, competition, market uncertainty, and the Middle East conflict, according to the HSBC India Manufacturing PMI.
Precious metal prices, particularly gold and silver, experienced a significant surge in the national capital as investors sought safe-haven assets amid escalating hostilities in the Middle East.
The Indian rupee weakened against the US dollar due to rising crude oil prices, geopolitical tensions in the Middle East, and foreign fund outflows.
Pakistan's Foreign Minister Ishaq Dar has called for dialogue to address the ongoing conflict in West Asia, emphasising the importance of diplomatic engagement and sustained efforts to promote peace and stability in the region.
Indian benchmark equity indices, Sensex and Nifty, experienced declines in early trade due to elevated crude oil prices and persistent geopolitical uncertainties, particularly following the expiry of the US-Iran ceasefire. Track Sensex, Nifty on August 19, 2026.
Indian parents express growing anxiety and fear for the safety of their children studying in Iran, as the conflict between Iran and Israel escalates. They are appealing to the Indian government for immediate evacuation.
Analysts predict a surge in gold and silver prices as investors seek safe-haven assets due to escalating tensions in the Middle East. The impact on domestic prices will depend on the conflict's duration, with geopolitical factors and macroeconomic data also playing a role.
'Actual implementation of the 14-point agreement is proving hard to achieve let alone striking and sustaining a long-term treaty or deal.'
Pakistan Prime Minister Shehbaz Sharif clarified that the recent Memorandum of Understanding (MoU) signed between the US and Iran does not include provisions regarding Tehran's ballistic missile programme. This statement followed talks with Iranian President Masoud Pezeshkian, with Sharif emphasising Iran's right to its defence capabilities and Pakistan's role as a mediator in the US-Iran peace process.
Pakistan's Prime Minister Shehbaz Sharif has offered to host talks between the US and Iran to help resolve the ongoing conflict in the Middle East, following reports of Pakistan's involvement in backchannel diplomacy.
China has denied reports of finalising a deal with Iran to sell CM-302 supersonic anti-ship missiles, amidst rising tensions in the Middle East and joint US-Israeli airstrikes.
United States Central Command (CENTCOM) forces have conducted a 'heavy wave of strikes' against numerous Islamic Revolutionary Guard Corps (IRGC) targets in Iran. This action was a direct response to attempted Iranian missile strikes on US forces in West Asia, which were successfully intercepted. The strikes targeted IRGC military command centres, missile and drone facilities, coastal surveillance, and maritime capabilities, aiming to reduce threats posed by Iran and its proxies. US President Donald Trump also issued strong warnings to Tehran, linking the escalation to a recent drone strike on an LNG vessel in Egypt's Damietta Port.
Much will depend on how the protagonists use the current interlude to work proactively for the beginning of a durable settlement or, on the contrary, prepare for a new round of escalation, points out Ambassador M K Bhadrakumar.
Jaishankar emphasised that the stability of the Middle East region was essential because about one crore Indian citizens live there and said, "a large part of our shipping passes through this region and also, oil comes from there."
Indian stock market indices closed on a mixed note, with the Sensex gaining 374 points driven by buying in Reliance Industries and ICICI Bank, while the Nifty remained flat. This divergence is attributed to a new Closing Auction Session (CAS) mechanism introduced by stock exchanges, impacting market liquidity and price discovery.
Top leaders from the US, Iran, and Pakistan, along with other nations, have gathered in Switzerland for high-level talks aimed at restoring peace in West Asia. These negotiations follow a recently signed Memorandum of Understanding between the US and Iran, initiating a 60-day window for a deal. Discussions focus on Iran's nuclear programme and the fragile interim peace deal, amidst renewed tensions and the fluctuating status of the Strait of Hormuz.
Analysts predict that developments in West Asia and their impact on crude oil prices will heavily influence investor sentiment in the upcoming week. Global market trends, foreign investor activity, and rupee-dollar movement will also play a role.
Even if there is an early agreement on a cessation of hostilities in West Asia, the price shock will not go away easily, points out A K Bhattacharya.
Despite calls for his ouster after the Test series defeat against Bangladesh, Pakistan skipper Shan Masood wants to continue leading the national side in the near future, sources in the PCB indicated.
Reliance Industries' digital arm, Jio Platforms, may see its initial public offering (IPO) delayed to the second half of fiscal 2027, according to CreditSights. The delay is primarily attributed to ongoing geopolitical tensions in the Middle East, which could impact market conditions and investor sentiment.
Global oil prices fell on Thursday to their lowest levels since before the outbreak of the Iran conflict, offering a significant economic tailwind for India, the world's third-largest crude importer, by easing inflation risks, reducing the import bill and improving the government's fiscal position.
Prime Minister Narendra Modi has highlighted the risks posed by the 'weaponisation' of resources and strategic sea routes, urging India to achieve greater self-reliance in energy to mitigate vulnerabilities to overseas supplies and geopolitical tensions.
Shiromani Akali Dal president Sukhbir Singh Badal and Punjab Vidhan Sabha Speaker Kultar Singh Sandhwan have appealed to Prime Minister Narendra Modi to take urgent steps for the evacuation of Indian citizens stuck in countries affected by the recent joint Israel-US attack on Iran.
