Nifty predicted to drop 175 points at opening
The Iran-Israel tensions are shaking up global markets, and India isn't immune. Oil prices have shot up significantly due to the conflict, which means everything from transport to daily essentials could get pricier. Gold prices at home have also crossed ₹1 lakh per 10gm as people look for safer investments.
Higher oil prices can push up inflation
Higher oil prices can push up inflation and make the rupee weaker, so things might cost more in the coming months. Small businesses, especially MSMEs, could feel squeezed as their expenses rise. The RBI and government may need to step in to keep things stable—think possible subsidies or tweaks in fuel taxes.
A lot depends on what happens next in West Asia
A lot depends on what happens next in West Asia. If the Strait of Hormuz—a key route for oil—gets blocked or disrupted, it could mean even higher costs for India. Policymakers are watching closely and weighing options to soften the blow for regular people and businesses alike.