From TCS, L&T, KRBL, Kalyan to Sun Pharma, what Middle East tensions mean for India Inc operating in the region
Simialr to the fall-out seen on the equity indices, some of the IT companies ranging from pharma to IT will see an impact amid the ongoing Middle East crisis.
Amid flare-up in Middle East tensions with Iran making a massive missile attack on Israel, Indian equities in the previous session witnessed an enormous rout. Nifty tumbled steeply to 25,250 levels. Nonetheless, other than the stock markets which has emerged as the backbone of the country's financial system, many companies operating in the region are seen to have an impact.
Here is the summary of the sector and companies which may see an impact:
Defence
Amid the war, companies in the space are bagging orders from Israel Aerospace Industries (IAI). Bharat Electronics, Bharat Forge, HAL and Paras Defence are among the beneficiaries.
Pharmaceutical companies
Sun Pharma has a 72 per cent stake in Israel-based Taro Pharma. Sun Pharma bought stake in the company in 2010 to enter the US dermatology market.
Dr Reddy and Lupin conduct business with Tel Aviv's Teva Pharmaceutical.
Rice stocks
Amid the war, there will be impact on export of rice on companies like KRBL and LT Foods.
IT companies
TCS, Wipro, Tech Mahindra and Infosys will also seen an impact as these IT services major render IT solutions and services to companies in Israel.
Jewellery companies
The Indian jewellery industry has an association with the Israeli diamond industry. The war situation will result in supply chain issues for the industry with negative impact on players like Titan, Rajesh Exports and Kalyan Jewellers.
NMDC, L&T
Infra and mining company NMDC also has exposure in the region.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Witness True Power of Compounding via SIP: Investing just Rs 1,000 a month can lead to a big corpus over years; see examples
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
Stocks to Buy for Long Term: Largecap, midcap, smallcap shares analysts are positive on; check out target prices
10:42 AM IST