From TCS, L&T, KRBL, Kalyan to Sun Pharma, what tensions in the Middle East mean for India Inc operating in the region
Amid the flare-up of tensions in the Middle East when Iran launched a missile attack on Israel, India’s equity in the previous session saw a major rally. Nifty fell to 25,250 levels. However, apart from the stock markets that have emerged as the backbone of the country’s financial system, many companies operating in the region seem to have an impact.
Here is a summary of the sectors and companies that may see an impact:
Self defense
During the war, companies in space are bagging orders for Israel Aerospace Industries (IAI). Bharat Electronics, Bharat Forge, HAL and Paras Defense are among the beneficiaries.
Pharmaceutical companies
Sun Pharma owns 72% shares in Israel-based Taro Pharma. Sun Pharma bought a stake in the company in 2010 to enter the US dermatology market.
Dr Reddy and Lupine do business with Tel Aviv’s Teva Pharmaceutical.
Rice stocks
During the war, it will affect the export of rice to companies like KRBL and LT Foods.
IT companies
TCS, Wipro, Tech Mahindra and Infosys will also see an impact as these IT services giants provide IT solutions and services to Israeli companies.
Jewelry companies
The Indian jewelry industry has ties to the Israeli diamond industry. The war situation will lead to supply chain problems in the industry adversely affecting players like Titan, Rajesh Exports and Kalyan Jewellers.
NMDC, L&T
Infra and mining company NMDC also has exposure to the region.
