India may face credit stress if Gulf conflict drags on: Moody's

The banking sector is already showing signs of pressure with recent declines in Sensex and Nifty, and specific bank stocks hitting intraday lows. A prolonged Gulf conflict could exacerbate these pressures by impacting asset quality and credit growth.

• •Moody's report warns of rising credit stress for India and other Asia-Pacific economies.
• •The stress is attributed to the ongoing Gulf conflict.
• •Key factors are higher energy prices and supply disruptions for fuel, food, and industrial inputs.
• •Import-dependent nations are most vulnerable.
• •Producers reliant on Middle Eastern oil and naphtha are most exposed.