When most of the traders are busy estimating how much loss the Indian market may record as the geopolitical tensions evolve in the Middle East, WhiteOak Capital Founder Prashant Khemka is expecting relief for investors as he believes it is the beginning of de-escalation.
Khemka said he was surprised as the Nifty 50 and Sensex had a gap-down opening on Monday morning.
After the attack at Iran's nuclear sites, US has claimed that its nuclear capabilities are obliterated completely. Despite that, the world awaits more clarity over the impact, Khemka said.
"From America's perspective, the job is done. Now, this can bring relative calm," he said.
Prashant Khemka, founder, WhiteOak Capital, was speaking with NDTV Profit Executive Editor Tamanna Inamdar.
According to him, the events over the weekend would result in a period of relative calm as their is no sign of it becoming a wider conflict. Generally, when the US gets involved in any conflict, other countries tend to stay out of it. This could be the beginning of end or de-escalation, he said.
"As the US is satisfied, it is unlikely to take any drastic step and it goes the same for Israel. Now, if Iran retaliates aggressively, that is remained to be seen," he said.
The focus now is on the Strait of Hormuz, said Khemka. "Out of the total oil supply which passes through the strait, 80% heads to Asia. None of the countries in Asia are going to get engaged against Iran any way. And closure of the Strait of Hormuz is unlikely to hurt Israel or the US," he said.
"Also, Iran is the biggest beneficiary of the Strait of Hormuz. Hence, why would Iran close the Strait of Hormuz is hard to understand. Closure of the Strait of Hormuz is going to inflict more damage on Iran and other Middle-East countries than anybody else," Khemka added.
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