Israel Hamas War: How are Indian companies with Israeli presence affected?

Share Market & IPO

Israel Hamas War: How are Indian companies with Israeli presence affected?

13 Oct 2023 Zinkpot 141

The ongoing Israel-Hamas War has turned the spotlight on several Indian companies for their presence in Israel. The Indian companies that have exposure to Middle Eastern economies have been on their toes for the last few days since the geopolitical tensions erupted in Israel.
Adani Ports: This company owns Haifa Port in Israel. Its share fell 5% even after the company clarified that the overall contribution of Haifa in Adani Port’s numbers is relatively small at 3% of the total cargo volume.
Sun Pharmaceutical: This pharmaceutical firm owns a majority stake in Israel’s Taro Pharmaceuticals. Its shares fell around 2%.
Generic drugmaker Dr Reddy’s and Lupin are also under investor scrutiny due to the potential impact on Tel Aviv-based Teva Pharmaceutical.
According to Bloomberg, the miner NMDC and the jewelers Kalyan Jewellers and Titan also have an Israeli connection.
Major Indian IT companies like Tata Consultancy Services (TCS), Wipro, Tech Mahindra and Infosys, State Bank of India, Bharat Forge, and Larsen and Toubro also hold latency in Israel.
Railway stocks like IRCON, Jupiter Wagons, RVNL, and IRFC fell around 5% to 6% each, on fears that the war could impact India’s plan of building an India-Middle East-Europe Economic Corridor which was announced at the G20 summit.
This corridor was seen as positive for railway-related companies as well as the shipbuilding industry. Shares of Shipping Corporation also fell about 5%.
According to the analysts, there is no cause for panic as far as the Indian stock market is concerned but the performance will be analyzed according to the global markets.
A large part of the impact on India depends on whether Iran, a major Hamas supporter is drawn into the war. That can disrupt oil supplies causing a spike in crude which can trigger a risk-off in the market.