Iran-US tensions hit Indian engineering stocks, L&T sees nearly 5% dip
Tensions between the US and Iran are increasing the risk of delays, higher logistics and insurance costs, and possible deferrals for major Gulf construction projects, and that's bad news for Indian engineering giants like L&T.
With a significant portion of L&T's massive ₹7.33 trillion order book tied to the Middle East, the company's shares took a nearly 5% hit this week as investors worried about delays.
Other firms also feeling the heat
It's not just L&T feeling the pressure—firms like KEC International, Kalpataru Projects, Engineers India, and Apar Industries all saw their stocks drop as well.
Experts warn that if the conflict drags on, project delays and rising costs could squeeze profits even more.
Despite these challenges, companies like L&T are still landing new deals in the region, showing they're not backing down just yet.
For anyone interested in global business or how world events ripple into Indian jobs and markets, this is one to watch.