INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity market may see some knee-jerk reaction, along with the rest of the world, to the US air strikes on Syria,
when trading resumes on Monday
US early Saturday launched air strikes on Syria in a combined operation with France and Britain in response to a suspected poison gas
attack that killed dozens of people last week
The action was aimed at degrading its chemical weapons capabilities in the biggest intervention yet in the conflict by western powers, said
facilities, the report said, quoting US Defence Secretary Jim Mattis and Joint Chiefs of Staff Chairman General Joseph Dunford.
The US
By Saturday morning, Dow futures traded over 100 points down, signalling bearish sentiment across markets.
Dalal Street veterans say the
is already struggling to deal with.
AK Prabhakar, Head of Research, IDBI Capital Markets, said earlier there was a trade war now it is a
Global markets will not like it
prices have already been on a boil, triggering fresh concerns across the globe
Oil prices rose on Friday, making the largest weekly gain since July, supported by concerns about the possibility of western military action
in Syria and reports of dwindling global oil inventories.
This past Wednesday, Brent crude and US WTI hit their highest levels since late
Arabia said it intercepted missiles over Riyadh
Now, since the feared action has already been executed, oil markets are likely to see more volatility ahead.
Experts say Syria poses a risk
to global stability because of its relationship with other powerful oil producers
about," Reuters quoted John Kilduff, Partner at hedge fund Again Capital Management, as saying.
Pashupati Advani of Global Forays said
rising crude prices is the biggest headwind for the Indian market
"The biggest concern that I see is the rising oil prices and it looks like the Saudis want to take the oil to $80 a barrel
This will lead to tough times for us because every dollar costs our country $3 billion a month or so," he said.
Jagannadham Thunuguntla,
Senior VP and Head of Research (Wealth), Centrum Broking, told ETMarkets.com on Saturday that the attack on Syria would trigger kneejerk
reactions in global markets.
"However immediate reaction can be seen on crude oil prices
From Indian macro point of view, oil price is an important factor as India imports 80 per cent of required oil
We have seen in the past that whenever these types of geopolitical tensions come, they subside soon and do not escalate to feared level
Advisory, said it's a proxy war and will not escalate into a big war, as everyone is sitting on a nuclear bomb
Hence, there could be only a kneejerk reaction on the market.
