Indian benchmark indices Sensex and Nifty closed largely flat on Monday, recovering from early losses, as escalating tensions in West Asia and a sharp rally in crude oil prices weighed on investor sentiment, despite resilience in IT and consumer durables stocks.
Indian benchmark indices, Sensex and Nifty, closed lower on Monday due to elevated crude oil prices, escalating US-Iran hostilities, and concerns over a potential US interest rate hike, impacting investor sentiment.
Indian stock markets this week will be primarily influenced by a series of corporate Q1 earnings, the evolving geopolitical situation in West Asia, and fluctuations in crude oil prices, according to market analysts.
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.
Prime Minister Narendra Modi and French President Emmanuel Macron discussed the escalating situation in West Asia, emphasising the need for dialogue and diplomacy to restore peace and stability in the region.
The Sri Lankan government attributes the sharp depreciation of the rupee against the US dollar to the ongoing conflict in West Asia, citing increased costs for essential imports like gas, fertiliser, and oil.
Union Finance Minister Nirmala Sitharaman has warned that the ongoing West Asia crisis is not merely a geopolitical issue but will directly lead to higher fuel costs for common people and businesses, impacting shipping, input availability, and export orders.
Indian benchmark indices, Sensex and Nifty, experienced declines in early trade due to elevated crude oil prices, escalating US-Iran hostilities, and renewed concerns over a potential US interest rate hike.
A recently finalised peace deal between the US and Iran, set to be signed on June 19, is expected to significantly benefit India's economy by boosting exports to West Asia, stabilising the rupee, and easing inflationary pressures, according to exporters and experts.
A prolonged supply shock can transmit to lower incomes, and dampen confidence and sentiment, warns Aditi Nayar, chief economist, head-research and outreach, ICRA.
IndiGo, India's largest airline, reported a net loss of Rs 238 crore for the June quarter, primarily attributed to a significant surge in fuel prices and operational constraints stemming from the West Asia conflict.
External Affairs Minister S Jaishankar will address the Lok Sabha on the situation in West Asia, as Parliament reconvenes for the Budget session amidst ongoing regional tensions.
External Affairs Minister S Jaishankar discussed the West Asia conflict's impact on the global economy, particularly energy security, with US Secretary of State Marco Rubio. He also engaged with GCC ambassadors and his Sri Lankan and German counterparts on the same issue.
Prime Minister Narendra Modi and French President Emmanuel Macron discussed the escalating situation in West Asia, emphasising the importance of dialogue and diplomacy to restore peace and stability in the region.
Fuel prices have risen by about Rs 7.5 per litre since May 15, as global crude oil prices surged due to the ongoing conflict in West Asia and supply concerns around the Strait of Hormuz.
An Indian national was killed in a missile attack on Riyadh, bringing the total number of Indian fatalities in the West Asia conflict to six. The Indian embassy in Riyadh has expressed condolences and is providing assistance to the family.
Union Finance Minister Nirmala Sitharaman has urged an increased focus on '3Fs'-fuel, fertiliser, and forex-to maintain India's economic resilience amidst the West Asia crisis, while also criticising those who spread pessimism.
RBI Governor Sanjay Malhotra stated that the central bank is closely monitoring whether the supply shock from the West Asia conflict will lead to a generalised price rise, potentially necessitating monetary policy action.
Indian benchmark indices, Sensex and Nifty, closed almost flat in choppy trade as investors remained cautious due to ongoing uncertainty in West Asia, relentless foreign fund outflows, and anticipation of the RBI's monetary policy decision.
Escalating geopolitical tensions in West Asia are beginning to disrupt India's automotive supply chain, leading to rising commodity prices, logistics bottlenecks, material shortages, and pressure on consumer demand, with two-wheeler makers already raising prices.
Prime Minister Narendra Modi has expressed deep concern over the escalating situation in West Asia, emphasising the need for dialogue and diplomacy to resolve disputes. India is closely monitoring developments to ensure the safety of its citizens in the region.
India on Tuesday expressed deep concern over the escalating conflict in Iran and the Gulf region, urging all sides to exercise restraint and prioritise civilian safety.
Iranian Deputy Foreign Minister Kazem Gharibabadi has urged India to take the lead in bringing peace to West Asia, highlighting the UAE's role in stalling BRICS consensus on the conflict. Gharibabadi also discussed a new framework with Oman for merchant vessels passing through the Strait of Hormuz.
Prime Minister Narendra Modi convened a meeting with senior ministers to assess the impact of the evolving situation in West Asia on India's crude oil, gas, petroleum, power, and fertiliser sectors, focusing on ensuring uninterrupted supply and stable logistics.
Maharashtra Congress leader Naseem Khan met with the representative of Iran's Supreme Leader in India to express condolences for the deaths of Ayatollah Khamenei, soldiers, and civilians in the West Asia conflict.
Analysts predict that developments in West Asia, their impact on crude oil prices, and the trading activity of foreign institutional investors (FIIs) will be crucial factors influencing the Indian stock market this week.
Prime Minister Narendra Modi spoke with Israeli Prime Minister Benjamin Netanyahu to discuss the escalating situation in West Asia, conveying India's concerns and emphasizing the importance of civilian safety. The conversation follows recent attacks and heightened tensions in the region.
Sri Lanka has established emergency hotlines and is closely monitoring the situation in West Asia following escalating tensions, urging restraint and de-escalation from all parties involved.
Iran's Islamic Revolutionary Guard Corps (IRGC) on Saturday (local time) announced the closure of the Strait of Hormuz "until further notice," stating that the strategic waterway would remain shut until the United States ends its "interference" in the West Asia region, Press TV reported.
Despite initial pressure from the West Asia conflict, analysts are optimistic about the Indian hospital sector's outlook, citing strong demand drivers and ongoing expansion plans that are expected to fuel significant revenue growth over the next few years.
Prime Minister Narendra Modi will hold a video conference with chief ministers of most states to assess their preparedness and strategies in response to the ongoing conflict in West Asia.
The Reserve Bank of India (RBI) has kept its key lending rate, the repo rate, unchanged at 5.25 per cent for the second consecutive time, citing concerns over rising energy prices, supply disruptions from the West Asia crisis, and potential inflationary pressures.
Modi said that the West Asia crisis has been going on now for more than three weeks and is having a very adverse impact on the global economy and on people's lives. He said the entire world is urging all parties for the earliest resolution of this crisis.
Gold and silver prices saw a significant decline in the national capital, with silver falling by Rs 7,800 to Rs 2.43 lakh per kilogram and gold by Rs 1,500 to Rs 1.54 lakh per 10 grams, as investors booked profits amid persistent doubts over the durability of the West Asia ceasefire.
Indian companies' overseas expansion plans are holding strong despite geopolitical tensions in West Asia, driven by structural factors like supply-chain diversification, free trade agreements, and market expansion, according to Ajay Sharma, managing director and head of banking at HSBC India.
Indian benchmark indices Sensex and Nifty experienced a significant slump in early trade, mirroring weak global trends, as escalating tensions in West Asia, particularly a drone attack on the UAE's Barakah nuclear facility, pushed crude oil prices higher. Track Sensex, Nifty50 movement and key market drivers for May 18, 2026.
Amid escalating tensions in West Asia, the Indian government has established a control room to provide crucial support and assistance to the nearly one crore Indian citizens residing in the region.
Sri Lanka has established emergency hotlines and is in close contact with its diplomatic missions in West Asia following escalating tensions in the region. The country is also preparing its airports for potential flight diversions and emergencies.
The Indian stock market is poised for a volatile week, influenced by the Reserve Bank of India's monetary policy decision, crucial global macroeconomic data, and the escalating geopolitical tensions in West Asia, according to market analysts.
Prime Minister Narendra Modi addressed an NDA rally, assuring that the Indian government is providing assistance to Indian citizens stranded in West Asia due to the ongoing conflict. He criticised the Congress party for allegedly making provocative statements and spreading rumours regarding the crisis.
