Will Sensex, Nifty react amid escalating Middle East war after Khamenei’s killing?

The Indian stock market is bracing for potential volatility following the assassination of Iran's Supreme Leader, Ayatollah Ali Khamenei. His death has escalated tensions in the Middle East, with analysts predicting a gap-up opening for benchmark indices Sensex and Nifty amid concerns of retaliation from Iran. US President Donald Trump confirmed the incident, citing it as part of extensive airstrikes. Financial experts have mixed opinions on the market's immediate reaction, with some suggesting a slight downturn due to geopolitical uncertainties. Sunny Agrawal from SBI Securities anticipates a marginal negative impact but believes any significant market responses will hinge on crude oil prices, which remain a crucial factor for India, given its heavy reliance on oil imports. Kranthi Bathini of Wealth Mills Securities warned of a negative short-to-medium term impact, particularly if crude prices exceed $80 per barrel, which could exacerbate inflationary pressures. Overall, while the market may see initial corrections, analysts maintain a long-term constructive outlook, emphasizing the importance of monitoring global oil prices and domestic economic fundamentals.