US-Israel-Iran tensions: From oil to defence - Sectors and stocks in focus in Indian markets on Monday | LIST

Escalating Israel-Iran-US tensions are expected to drive sector-specific action in Indian markets on Monday, March 2, with oil explorers, shipping and defence stocks seen gaining on higher crude prices and geopolitical risk, while oil marketers, aviation, paint, tyre, gold-linked and Middle East-exposed export stocks may face pressure.

Stocks: ONGC, Oil India, Vedanta, HOEC

Impact: Higher Crude Prices = Higher Profitability

Oil marketing companies -- Negative

Impact: Higher Crude Prices = Lower Margins

Paint, Tyre, Aviation -- Negative

Impact: Crude oil and its derivatives are key RM = Negative impact on margins

Shipping companies -- Positive

Impact: Spike in shipping rates due to Strait of Hormuz disruption = Higher revenue

Gold related stocks -- Negative

Impact: Higher gold prices = Negative impact on Demand

Export oriented companies with Middle East exposure -- Negative

Stocks: Sun Pharma, Adani Ports, TCS

Impact: Exposure to Israel = Revenue impact

Defence Sector -- Positive

Impact: Geopolitical conflicts = Sentimental Positive (demand for defence products could surge)

Iran's Supreme Leader Ayatollah Ali Khamenei was killed in Israeli and US strikes. Iranian state media confirmed his death on Sunday. Iran declared 40 days of national mourning after Khamenei's death.

Iranian Cabinet warned that this 'great crime will never go unanswered' after Khamenei is killed by US-Israeli campaign, reported AP. Iran's Revolutionary Guard said 'the most-intense offensive operation' ever coming to target Israel, US Mideast bases, reported AP.

Iran's parliament speaker called US and Israeli leaders 'filthy criminals' who will face 'devastating blows.' The death occurred following strikes by the US and Israel (Operation Epic Fury/Lion's Roar) on Saturday. By announcing exactly 40 days of mourning, the government is leaning into a powerful cultural script, providing the clerical establishment time to manage the transition behind closed doors.

The country's Supreme Leader's office has declared a period of national mourning, with flags flying at half-mast and public gatherings planned to pay respects, marking the closing of a 37-year chapter in the Islamic Republic's history.

Ayatollah Khamenei was the successor to the Revolution's founder, Ruhollah Khomeini. Since 1989, his "story" was one of unwavering defiance against Western influence. Authorities have heightened security across the country, particularly in major cities like Tehran, to prevent unrest and ensure public safety.

Iran’s Leadership Council

Religious scholar Alireza Arafi has been appointed to Iran’s temporary leadership council, a body responsible for carrying out the duties of the supreme leader until a new leader is selected by the Assembly of Experts.

Arafi is a member of the powerful Guardian Council, which plays a major role in overseeing elections and reviewing legislation. His appointment to the three-member provisional leadership council was confirmed by the Expediency Council, a key institution that settles disputes between governing bodies in Iran.

The temporary council is expected to function as a caretaker authority if the supreme leadership position becomes vacant. Along with Arafi, the council includes Iran’s president and the chief justice. The other two members are President Masoud Pezeshkian and judiciary head Gholam-Hossein Mohseni-Ejei.