Israel’s strikes on Iran on June 13 have shaken markets across the world. Oil prices jumped over 10% — their highest rise in a single week since 2022. The conflict has raised worries about disruptions to oil supplies, adding pressure on sectors that rely on crude oil.
Meanwhile, the Nifty opened nearly 1% lower, following weak signals from global markets. The key support for Nifty lies at 24,250, and if it drops further, it may test 23,900. The Sensex fell in a similar fashion.
What It Means for the Average Investor
For you and me, this simply means we should be careful. Rising oil prices will affect companies that use a lot of crude oil — like OMCs, tyre makers, and airline companies. If their profits suffer, their stocks may drop.
Higher oil prices can also affect inflation, making food and travel more expensive. It may put pressure on the Rupee and lead the RBI to reconsider cutting interest rates. So, this isn’t just about the market; it’s about the price you pay at the grocery store and the airport.
Why Oil, Rupee, and Nifty Are All Linked
Picture this: Iran and Israel are two key players in a very fragile region. If their conflict escalates, it can choke the flow of oil through the Strait of Hormuz — a key route for much of the world’s crude oil. That means less oil in the market and higher prices.
Higher oil prices can undermine companies’ profits, weaken the Rupee, and make inflation rise. Naturally, this makes investors nervous and pulls the Nifty downward.
Market Voices Weigh In
Prashanth Tapse from Mehta Equities says 24,250 is a key Nifty support. If it drops further, we may test 23,900. Sunny Agrawal from SBI Securities highlights the vulnerability of sectors like OMCs and tyre makers. Anil Kumar Bhansali from Finrex points to a weakening Rupee and growing Current Account Deficit.
Meanwhile, Amit Pabari from CR Forex says the Rupee may break above 86.10 against the dollar and move toward 86.90 if tensions rise.
Final Takeaway — Keep Your Eyes Open
For now, we can expect markets to stay nervous. Rising oil prices, weak Rupee, and falling stocks — it’s all connected. The best strategy might be staying cautious and avoiding heavy positions.
As a trader or investor, watch 24,250 Nifty support closely. If it breaks, we might see more downside.
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