India is Israel’s 2nd trading partner in Asia and the 9th largest globally. The bilateral trade has been majorly dominated by diamonds and chemicals.
However, recent years have seen an increase in trade in areas such as electronic machinery and high-tech products; medical equipment; communications systems, etc. The two nations celebrated 30 years of the upgradation of bilateral ties to full diplomatic relations earlier in 2022.
However, in the wake of escalating tensions between Israel and Iran, the Indian stock market has experienced significant declines. Over the last two days, both the BSE Sensex and NSE Nifty have faced sharp drops due to investor concerns over geopolitical instability and rising oil prices.
The conflict has raised fears of potential disruptions to oil supplies, driving up crude oil prices and increasing inflation concerns for oil-importing countries like India.
The uncertainty surrounding the conflict has led to a sell-off in stocks as investors seek safer assets amid rising volatility.
Also Read: 5 Defence stocks to benefit after PM Modi approves defence deals worth ₹80,000 Cr
Following are a few stocks that might be affected by the ongoing Israel-Iran war:
Adani Ports & Special Economic Zone Limited
With a market cap of Rs. 3.06 lakh crores, the shares of the largest port developer and operator in India were trading at Rs. 1,411 on Friday’s early trade.
Adani Ports is one of the prominent Indian companies with ties to Israel, owning a substantial stake in Haifa Port, one of Israel’s largest ports and an important transshipment hub on the Mediterranean coast.
In early 2023, Adani Ports and Special Economic Zone Limited (APSEZ), in partnership with Israel’s Gadot Group, completed the acquisition of Haifa Port Company Limited (HPC).
The stock has delivered positive returns of nearly 79.6 percent in the last one year, as well as around 35.4 percent returns year-to-date.
Adani Ports and Special Economic Zone Limited is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi-product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra.
Sun Pharmaceutical Industries
With a market cap of Rs. 4.59 lakh crores, the shares of the largest pharmaceutical company in India surged by 0.43 percent on BSE to Rs. 1,895 during Friday’s early trade..
Sun Pharmaceutical Industries has a significant relationship with Israel through its majority stake in Taro Pharmaceutical Industries, an Israeli drugmaker.
This partnership allows Sun Pharma to leverage Taro’s established presence in the global pharmaceutical market, particularly in North America, where Taro has manufacturing and distribution facilities.
Established in Israel, Taro Pharmaceutical Industries specializes in generic pharmaceuticals, with facilities in Israel, Canada, and the United States.
Written by: Shivani
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