Oil Surge on Iran Conflict Threatens Fresh Blow to Indian Rupee, Stocks

Good morning...

I’m Chiranjivi Chakraborty, an equities reporter in Mumbai, with what you need to know before the start of what looks like an action-packed week.

Indian stocks and the rupee are bracing for a turbulent open after US-Israel strikes against Iran sent oil prices surging the most in four years. Asian stocks are down while Nifty futures dropped as much as 1.7%, signaling a gap-down start as investors price in higher energy costs — a particular concern for India, which imports nearly 90% of its oil. Sectors sensitive to moves in oil prices — such as aviation, paints, tires, and specialty chemicals, as well as shares of oil marketing companies — will likely face selling pressure today. On the flip side, shares tied to defense and gold may fare better.

Separately, Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney will hold delegation-level talks in New Delhi.

Indian markets will be closed on Tuesday for the festival of Holi.