Tensions in the Middle East have sent shockwaves through financial markets worldwide, with the Strait of Hormuz emerging as the focal point of concern. The crucial passage, which carries nearly 20% of the world’s fuel supply, has kept oil prices elevated above $100 per barrel, fuelling uncertainty across asset classes. The unease has spilled over into global equities, where major indices have come under sharp pressure as investors adopt a cautious stance. Commodity markets, too, are feeling the strain, with disruptions affecting the supply of essential fertilisers and key industrial raw materials.Back home, Dalal Street has remained on edge since the conflict began, alternating between gains and losses as optimism around a ceasefire is offset by concerns over a possible closure of the Strait of Hormuz.On Monday morning, the pressure was clearly visible across markets. Rupee weakened by 49 paise against the US dollar to trade at 93.32, while equities saw a sharp sell-off. The Nifty50 slipped below the 23,600 mark, trading at 23,608.45 at 9:16 am, down 442 points or 1.84%. The BSE Sensex also declined steeply, falling over 1,500 points to 75,988.32, a drop of 2.01%.With geopolitical tensions keeping markets on edge, investors are asking a key question – where should they put their money right now?
Investing amid Middle East tensions
Market expert Ajay Bagga told ANI that the optimism seen earlier in the week has faded, with sentiment turning negative once again.“Last Wednesday, there was hope in the markets that something was coming by when the ceasefire and the talks were announced. But that momentum has faded. So we are again getting negative on the Indian markets and against the earnings driving the market, it’s geopolitical risk which will drive the markets,” Bagga said.Amid the uncertainty, he cautioned against impulsive decisions and emphasised the importance of staying disciplined. “Not the time to trade. Invest, do your discipline monthly investment through the SIP route. Do not try to time this market because I don’t think the bottom has formed but nobody knows when the bottom will be formed,” he said in a conversation with ANI.Meanwhile, ripple effects are extending beyond energy markets. Around 20% of India’s goods exports are facing disruptions as shipping routes through the Red Sea and the Gulf of Oman come under strain.Bagga urged investors to remain cautious amid the ongoing uncertainty. “Caution on the Indian markets, caution on the global markets, conserve capital right now, not the time to go bottom picking because you might be catching falling knives and get hurt in the process,” he warned.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
