If the conflict worsens, the impact on global crude oil prices could be substantial due to Iran's role as a key oil producer. Although crude oil prices are currently stable, any sharp increase could disrupt central banks' rate-cutting strategies. The Indian market is already in a correction phase, influenced by a stronger dollar index following Donald Trump's 2024 U.S. Presidential election win. The persistent Middle East tensions are adding to the negative market sentiment, leading investors to turn to safer assets such as bonds and gold. "To safeguard portfolios, diversifying into defensive sectors like IT, healthcare, and FMCG can provide stability during uncertainty," Singh recommended.

Source: Mint November 16, 2024 21:47 UTC