Chicago – October 16, 2024
The ongoing conflict in the Middle East has had a significant impact on the global economy, including India’s stock market.
As Iran launched its largest missile attack on Israel, investors in India felt the tremors, with the Sensex falling by over 1,700 points on Thursday.
The decline has left many wondering how this conflict, taking place thousands of miles away, could affect Indian companies, especially those with ties to Israel.
There are at least 14 listed Indian companies that have a presence or business connections in Israel. For some of these companies, the impact could be limited, while others may face more significant challenges.
One of the most prominent Indian companies linked to Israel is Adani Ports. The company owns a significant stake in the Haifa Port, one of Israel’s busiest ports.
Amid the escalating conflict, Adani Ports’ shares fell by as much as 2.5%, reaching a day’s low of Rs 1,429.35 on the Bombay Stock Exchange (BSE). The company’s investments in Israel have drawn attention as the situation in the region unfolds.
Sun Pharmaceutical, India’s largest drugmaker, has a strong presence in Israel through its majority stake in Taro Pharmaceutical. While the stock traded flat on the day, analysts and investors are keeping a close eye on how the conflict might impact operations.
Other pharmaceutical giants, such as Dr. Reddy’s and Lupin, are also under scrutiny due to their connections to Tel Aviv-based Teva Pharmaceutical, a key player in the global generic drugs market.
Several Indian IT companies, including Tata Consultancy Services (TCS), Wipro, Tech Mahindra, and Infosys, have a presence in Israel.
These companies are crucial for providing tech services and support to various industries in Israel. While the immediate impact on their operations may be minimal, the uncertainty in the region has left investors vigilant.
In the financial services sector, the State Bank of India (SBI) also has connections in Israel. However, the bank’s broader global operations and strong position in India mean that it may be better equipped to weather any potential disruptions in the region.
