US Strikes Venezuela: What Does The Attack Mean For Global And Indian Markets?

After being disrupted by hefty tariff calls by the United States, the Indian and global stock markets find themselves at the behest of US President Donald Trump. The Trump administration launched audacious strikes on Venezuela, capturing Venezuelan President Nicolas Maduro and his wife Cilia Flores and flying them out to the US.

In the wake of this new geopolitical jolt, and accounting for the importance of Venezuela in the brent crude arena, the commodities market are already bracing for possible impact on Monday. However, where do Indian and global equity markets stand in the face of all the turmoil?

"The Indian equity market is expected to remain stable. However, due to the rise in crude oil prices, we may see some downside impact on the oil stocks. However, this downside will be limited, and oil stocks are expected to recover soon.", Mint quoted Sandeep Pandey of Basav Capital as saying.

Jamie Cox, managing partner at Harris Financial Group in Richmond also commented on the expected impact on the US stock market and said that overall market reaction will be muted.

"We might get some market moving news tomorrow during the OPEC meeting. (Shares in) Big Oil and the drillers are likely to get a bid, as speculation could build about the potential benefits of rebuilding the oil industry in Venezuela", Cox told news agency Reuters.

Futures for the US market will open shortly, giving better insights into how they will move on Monday.

Venezuela holds world's largest proven oil reserves and therefore, experts see a gap-up opening in prices of oil, gold, silver and gasoline.

Crude oil prices are expected to be lifted on account of possible supply disruptions from Venezuela. Additionally, safe haven demand for gold and silver may also be boosted in the wake of the sudden escalation in the crisis, Kaynat Chainwala, senior manager - commodity research at Kotak Securities said in a Moneycontrol report.