5 Indian Stocks to Watch if US-Iran Deal Finalises

• Infra sector

  #1 L&T

  First on the list is L&T.

  Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide.

  in construction, L&T, India's largest construction organisation and ranked among the world's top contractors, has been over the past seven decades transforming cityscapes and landscapes with structures of immense size and grandeur.

  Thecompany's manufacturing footprint extends across eight countries in addition to India. L&T has several international offices and a supply chain that extends around the globe.

  Why does L&T remain a stock to watch if the US Iran Deal Finalizes?

  L&T remains a stock to watch due to its strong presence in West Asia through its Hydrocarbon, Power Transmission & Distribution (T&D), Renewables, and core urban infrastructure businesses. The GCC region, a key market for the company's projects business, continues to witness significant investments in AI infrastructure, data centres, energy transition projects, and large-scale urban developments across Saudi Arabia and the UAE.

  As per its FY26 annual report, L&T's order book stood at a record Rs 7,400 billion (bn) , growing 28% year-on-year, with international orders contributing 52% of the total order book, highlighting its strong global execution pipeline.

  Moreover, a stable geopolitical environment in the Gulf region could support continued investments in large-scale infrastructure.

  Further easing geopolitical tension could lead to lower diesel, transportation, and logistics costs, improving cost efficiencies for infrastructure and EPC companies.

  For more details, see the L&T company fact sheet and quarterly results.

• Aviation sector

  #2 Indigo

  Next stock on the list is Indigo.

  IndiGo is India's largest and most preferred passenger airline and amongst the fastest-growing airlines in the world.

  With a fleet of 440 aircraft, the company operates over 2,200 daily flights connecting 141 destinations, including 45 international locations.

  Why does IndiGo remain a stock to watch if the US-Iran deal is finalised?

  A potential US-Iran peace deal could ease geopolitical tensions in West Asia and reduce concerns over disruptions in the Strait of Hormuz, leading to softer crude oil prices.

  Lower crude prices can translate into reduced Aviation Turbine Fuel (ATF) costs, which form a significant portion of an airline's operating expenses.

  As fuel expenses account for nearly 40% of airline costs and can rise further during periods of volatility, a decline in ATF prices may support IndiGo's profitability and improve margin visibility.

  Combined with its dominant market position, extensive network, and strong operational efficiency, IndiGo remains a stock to watch amid easing oil price pressures.

  For more details, see the INTERGLOBE AVIATION (INDIGO) company fact sheet and quarterly results.

• Tyres

  #3 Apollo Tyres

  Next on the list is Apollo Tyres.

  Apollo Tyres is an international tyre manufacturer and the leading tyre brand in India.

  The company has a total of seven manufacturing units, 5 in India and 1 each in the Netherlands and Hungary.

  Apollo Tyres markets its products under its two global brands - Apollo and Vredestein, and its products are available in over 100 countries through a vast network of branded, exclusive and multi-product outlets.

  The company's product portfolio includes the entire range of passenger cars, SUVs, MUVs, light trucks, and more.

  Why does Apollo Tyres remain a stock to watch if the US-Iran deal is finalised?

  Apollo Tyres remains a stock to watch as easing crude oil prices can lead to lower raw material costs for tyre manufacturers.

  Synthetic rubber, a key input in tyre production, is derived from crude oil, while natural rubber prices are also influenced by overall commodity trends. A decline in crude prices can help reduce input cost pressures, potentially supporting the company's operating margins and profitability.

  For more details, see the APOLLO TYRES company fact sheet and quarterly results.

• Banking stocks

  #4 HDFC Bank

  Next on the list is HDFC Bank.

  HDFC Bank is one of India's leading private banks.

  The Housing Development Finance Corporation Limited or HDFC Ltd was among the first financial institutions in India to receive an "in principle" approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

  The Bank's international operations comprises five branches, located in Bahrain, Dubai, Hong Kong and Singapore and an IFSC Banking Unit in Gujarat International Finance Tec-City.

  Why does HDFC Bank remain a stock to watch if the US-Iran deal is finalised?

  HDFC Bank remains a stock to watch as a potential peace agreement in the Middle East could ease geopolitical concerns, resulting in lower crude oil prices. Softer crude prices can improve India's inflation outlook, increasing expectations of a favourable interest rate environment and supporting overall economic growth.

  Improving macroeconomic conditions and lower borrowing cost expectations generally boost investor sentiment towards the banking sector.

  For more details, see the HDFC BANK company fact sheet and quarterly results.

• OMC

  #5 HPCL

  Last on the list is HPCL.

  Hindustan Petroleum Corporation Limited (HPCL) is a premier Indian 'Maharatna' public sector undertaking under the Ministry of Petroleum and Natural Gas.

  Headquartered in Mumbai, it operates as a subsidiary of the Oil and Natural Gas Corporation (ONGC).

  Owns and operates major refineries in Mumbai (capacity of 9.5 MMTPA) and Visakhapatnam (15 MMTPA). It also owns India's largest Lube Refinery in Mumbai.

  Why does HPCL remain a stock to watch if the US-Iran deal is finalised?

  HPCL remains a stock to watch as easing geopolitical tensions and a potential US-Iran deal could lead to softer crude oil prices, reducing raw material costs for oil marketing companies.

  OMCs typically face margin pressure when crude prices rise sharply, as they procure crude at elevated prices but have limited flexibility to fully pass on the higher costs to consumers due to pricing controls.

  Therefore, lower crude prices can improve refining and marketing margins, supporting profitability.

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

Stocks to Watch if Iran-US War Finalises

Here's a compiled list of stocks to watch if the US-Iran deal finalises and crude oil prices continue to ease.

Conclusion

A potential US-Iran deal and easing tensions in West Asia could bring relief to crude oil prices, creating a favourable environment for sectors such as aviation, tyres, infrastructure, banking, and oil marketing companies.

However, investors should note that crude prices are influenced by several global factors, and any benefit may depend on how long lower oil prices sustain.

Therefore, rather than making investment decisions solely based on a geopolitical event, investors should focus on companies with strong fundamentals, healthy financials, competitive advantages, and long-term growth opportunities.

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.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...