From TCS, L&T, KRBL, Kalyan to Sun Pharma, what Middle East tensions mean for India Inc operating in the region

Simialr to the fall-out seen on the equity indices, some of the IT companies ranging from pharma to IT will see an impact amid the ongoing Middle East crisis.

Amid the war, there will be impact on export of rice on companies like KRBL and LT Foods. Image credit: AP

Amid flare-up in Middle East tensions with Iran making a massive missile attack on Israel, Indian equities in the previous session witnessed an enormous rout. Nifty tumbled steeply to 25,250 levels. Nonetheless, other than the stock markets which has emerged as the backbone of the country's financial system, many companies operating in the region are seen to have an impact.

Here is the summary of the sector and companies which may see an impact:

Defence

Amid the war, companies in the space are bagging orders from Israel Aerospace Industries (IAI). Bharat Electronics, Bharat Forge, HAL and Paras Defence are among the beneficiaries.

Pharmaceutical companies

Sun Pharma has a 72 per cent stake in Israel-based Taro Pharma. Sun Pharma bought stake in the company in 2010 to enter the US dermatology market.

Dr Reddy and Lupin conduct business with Tel Aviv's Teva Pharmaceutical.

Rice stocks

Amid the war, there will be impact on export of rice on companies like KRBL and LT Foods.

IT companies

TCS, Wipro, Tech Mahindra and Infosys will also seen an impact as these IT services major render IT solutions and services to companies in Israel.

Jewellery companies

The Indian jewellery industry has an association with the Israeli diamond industry. The war situation will result in supply chain issues for the industry with negative impact on players like Titan, Rajesh Exports and Kalyan Jewellers.