US-Israel-Iran War: 5 Stocks Across Sectors to Watch as Geopolitical Risks Rise

• Oil and Energy

  The biggest concern is oil. Brent crude prices have surged amid fears of supply disruption, especially after reports that the Strait of Hormuz - a critical route for global oil shipments may be affected. Nearly a fifth of the world's oil trade passes through this narrow corridor.

  For India, which imports nearly 85-90% of its crude oil requirements, any sharp rise in oil prices has a direct bearing on inflation and corporate profitability.

  #1 Oil India

  First on the list is Oil India.

  The Company is engaged in exploration, development and production of crude oil, natural gas, LPG and condensate and providing services such as pipeline transportation and generation of renewable energy.

  Its crude oil production has shown steady year-on-year growth, increasing from 3.01 MMT in FY22 to 3.458 MMT in FY25, marking a rise of nearly 15% over three years. In FY25 alone, crude oil output grew 2.95% year-on-year, supported by operational efficiencies and stable field performance.

  Beyond domestic operations, Oil India's international asset portfolio spans seven countries across Africa, Latin America, Europe, and South Asia, providing geographic diversification.

  The company has exposure to 10 overseas projects covering a total area of 39,624 sq km, spread across producing, development, and exploratory assets.

  Key producing and development interests are located in Russia, Nigeria, and Gabon, while exploratory assets are present in Venezuela, Libya, Mozambique, and Bangladesh.

  Oil India remains a stock to watch amid escalating geopolitical tensions, as higher crude prices could directly lift realisations for its upstream oil portfolio.

  Going forward, aligned with Vision 2040, Oil India aims to strengthen domestic onshore exploration while expanding offshore and deep-water capabilities through global partnerships.

  For more details, see the OIL INDIA company fact sheet and quarterly results.

  Other Oil Stocks to Watch

  ONGC may see a positive impact from higher crude prices amid escalating geopolitical tensions. Meanwhile, oil marketing companies such as Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited may face pressure, as elevated crude prices typically squeeze marketing margins and impact profitability.

• Defence sector

  Any geopolitical escalation also brings renewed attention to aerospace and defence stocks, as heightened security concerns typically lead to increased defence spending. In the current scenario, the conflict is seen as a positive trigger for Indian defence companies-particularly those with strategic partnerships with Israel.

  #2 Bharat Electronics

  Next on the list is Bharat Electronics.

  BEL produces a wide range of electronic equipment for the Indian defence forces, including radar systems, weapon systems, communication systems, and electronic warfare systems.

  It has diversified into arms and ammunition, missiles, cyber security, and unmanned systems.

  Nearly 90% of the company's turnover is generated from the defence segment, underlining its strong strategic positioning. The company is also gaining traction in high-growth segments such as air defence systems and electronic warfare.

  Further, in 2024, BEL further strengthened its international defence footprint through a joint venture with Israel Aerospace Industries (IAI), forming BEL IAI AeroSystems Private Limited to provide post-warranty lifecycle support for defence systems in India.

  The JV aligns well with deeper India-Israel defence cooperation, positioning BEL as a key stock to watch amid escalating geopolitical tensions, and stronger defence collaborations could support sustained order inflows.

  For more details, see the Bharat Electronics factsheet and quarterly results.

  Other Defence Stocks to Watch

  Hindustan Aeronautics Limited and Bharat Dynamics Limited, which could see a rise in demand amid heightened defence preparedness. For more stocks with strong Israel-linked defence exposure, check out our editorial on - 5 Defence Stocks to Watch as India-Israel Defence Ties Strengthen.

• Paint Stocks

  Crude oil and its derivatives are key raw materials for the paint industry, and a sharp rise in crude prices could negatively impact margins.

  #3 Asian Paints

  Next on the list is Asian Paints.

  The company operates in the business of paints and home decor.

  Asian Paints is India's foremost paint and decor powerhouse. It ranks among the top ten decorative coatings companies globally, with a group turnover of Rs 338 billion (bn).

  The 80+ year old company has major brands like Asian Paints, Apco, etc., under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting and more.

  In India, Asian Paints has established over 0.17 m retail touchpoints across India. This vast network is continuously expanding, with new touchpoints emerging in smaller towns and cities.

  However, amid war-led geopolitical escalation, higher crude oil prices could impact Asian Paints, as crude derivatives form a key raw material, which may put pressure on margins.

  For more details, see the ASIAN PAINTS company fact sheet and quarterly results.

  Other Paint Stocks to Watch

  Berger Paints and Kansai Nerolac Paints. Similar to Asian Paints, both companies rely heavily on crude oil-linked raw materials, and any sustained rise in crude prices due to geopolitical tensions could increase input costs and pressure operating margins.

• Gold Stocks

  Gold-related stocks in India are largely expected to be positively impacted, at least in the near term, because gold typically benefits from safe-haven demand amid heightened geopolitical risk.

  #4 Kalyan Jewellers

  Next on the list is Kalyan Jewellers.

  The company is among India's most trusted jewellery brands, backed by a legacy of over 100 years in jewellery retailing. It designs, manufactures, and retails a wide range of gold-studded and other jewellery products, catering to both wedding and everyday wear segments.

  Kalyan Jewellers offers an extensive portfolio spanning gold, diamond, platinum, and pearl jewellery under well-known brands such as Mudhra, Anokhi, Rang, and Ziah.

  As of March 31, 2025, the company had a strong international footprint with 36 showrooms across the GCC, including the UAE, Qatar, Kuwait, and Oman, along with one showroom in the US, strengthening its presence in key overseas markets.

  This makes Kalyan Jewellers India Limited a stock to watch, as rising geopolitical tensions typically support gold prices, which could boost jewellery demand, inventory valuations, and overall business sentiment.

  For more details, see the KALYAN JEWELLERS company fact sheet and quarterly results.

  Other Gold Stocks to Watch

  Other gold stocks to watch include Titan Company Limited and Senco Gold Limited, as for Indian gold-linked companies, such as gold jewellery makers, this could translate into higher asset values.

• Shipping Stocks

  A potential disruption at the Strait of Hormuz could lead to a spike in global shipping rates, making shipping stocks worth watching as higher freight rates can directly translate into improved revenues and operating leverage.

  #5 Shipping Corporation of India

  Last on the list is Shipping Corporation of India.

  It is India's largest shipping company by shareholding, incorporated in 1961.

  The group, along with its subsidiaries and joint ventures, is engaged in the transportation of goods across global trade routes. Its owned fleet comprises bulk carriers, crude oil tankers, product tankers, container vessels, LPG/LNG carriers, and offshore supply vessels, while it also manages a large number of vessels on behalf of government departments and other organisations.

  As the country's premier shipping line, the SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business, servicing both national and international trades.

  This makes Shipping Corporation of India a stock to watch amid escalating war tensions, as supply-route disruptions can push up freight rates, supporting revenue visibility for shipping operators.

  For more details, see the SHIPPING CORP company fact sheet and quarterly results.

  Other Shipping Stocks to watch

  GE Shipping, India's largest private sector shipping and oilfield services provider, is another shipping stock to watch as geopolitical disruptions could lift freight and charter rates.

At a Glance: Sectoral Impact of Geopolitical Tensions

Conclusion

In periods of heightened geopolitical tension such as the US-Israel-Iran conflict, certain sectors, including defence, upstream energy, shipping, and gold-linked businesses, tend to come into focus, making these stocks worth watching as markets reassess risk and sectoral impact.

That said, while certain stocks may be worth watching amid evolving geopolitical developments, investors should stay cautious, avoid aggressive bets, and maintain a well-diversified portfolio, as war-related situations can change quickly and lead to sharp and unpredictable market movements.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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