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Foreign investors aggressively sold Indian stocks in early March, withdrawing over Rs 52,000 crore due to West Asian tensions, a weakening rupee, and rising oil prices. This follows a brief inflow in February, with analysts citing geopolitical risks and better prospects in other Asian markets. Despite outflows, opportunities arise for domestic investors.

Indian markets witnessed a sharp sell-off last week, with the top 10 companies losing a staggering Rs 4.48 lakh crore. Rising crude oil prices and escalating global tensions fueled inflation fears, impacting major firms like SBI and HDFC Bank the most. Despite the downturn, Reliance Industries retained its top valuation spot.

India is well-prepared for Middle East crisis disruptions, with ample fuel stocks and no supply issues reported. The government is diversifying gas import sources and will soon announce support for affected exporters, including insurance schemes. Despite short-term economic pressures and rupee stress, India remains confident in its growth trajectory.

Indian exporters are navigating Middle East conflict fallout, facing rising freight, insurance, and transit times. Businesses are adapting by adjusting inventory and contracts, while shipping lines reroute vessels around Africa, adding significant delays and costs. The government is exploring support measures, including airlifting perishables and alternative port options.

Indian equity markets face a volatile week, driven by Middle East conflict developments and crude oil price movements. Investors are also keenly watching the US Federal Reserve’s interest rate decision and inflation data. Steep losses were recorded last week amid rising oil, a weakening rupee, and foreign fund outflows.

Pakistan grapples with an escalating economic crisis as Middle East conflict disrupts vital oil shipments through the Strait of Hormuz. Soaring fuel prices are impacting farmers, urban commuters, and households, forcing difficult choices. With the nation already financially strained, prolonged energy shortages threaten to destabilize its economy further, affecting daily life and traditional celebrations.

Iran has strategically prepared to leverage the Strait of Hormuz, employing asymmetric warfare with drones and missiles to disrupt global oil flows. This approach, learned from past conflicts, aims to inflict economic pain and pressure the US, rather than engage in direct confrontation. The strategy focuses on survival and demonstrating that coercion cannot force compliance.

India is exploring increased production of dimethyl ether (DME) as an alternative to LPG amid global oil market disruptions. A government research institute has established a pilot plant and plans to scale up DME output, a fuel scientists say can be used with existing LPG infrastructure, addressing supply challenges and rising prices.

Indian airlines are increasing ticket prices due to soaring aviation fuel costs, driven by Middle East geopolitical tensions. Akasa Air, following Air India and IndiGo, will implement fuel surcharges from March 15th, ranging from Rs 199 to Rs 1,300.