Fear levels of March 2020? Iran war gives Nifty its worst month since the dreaded Covid crash
Analysis of this story by et_markets · 13 Mar 2026, 3:32 PM IST (about 2 months ago)
AI Analysis
The auto sector is currently facing headwinds from rising commodity costs, particularly crude oil and LNG, exacerbated by geopolitical tensions. This impacts manufacturing costs and potentially consumer demand.
Trading Insight
Key Evidence
- •Indian equities are experiencing their worst month since the Covid crash.
- •The downturn is attributed to the Iran war, $100 crude oil prices, and heavy FII selling.
- •Fund houses like Bajaj Finserv AMC and Axis Mutual Fund believe strong earnings and resilient fundamentals in India may stabilize markets post-geopolitical stabilization.
- •Nifty Auto has fallen over 2% today, with auto stocks extending losses due to LNG supply risks.
- •Risk flag: Further escalation of geopolitical tensions leading to higher crude/LNG prices.
Affected Stocks
AMC arm mentioned as maintaining positive long-term outlook despite market downturn.
Fund house mentioned as maintaining positive long-term outlook despite market downturn.
Rising crude oil prices generally benefit upstream oil companies.
Rising crude oil prices increase input costs for oil marketing companies.
Auto sector impacted by LNG supply risks and rising commodity costs due to geopolitical tensions.
Auto sector impacted by LNG supply risks and rising commodity costs due to geopolitical tensions.
Auto sector impacted by LNG supply risks and rising commodity costs due to geopolitical tensions.
Sources and updates
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