Mohammad Nazir Paktyawal, 41, an Afghan father who served with US forces in Afghanistan in 2021, died in ICE custody within a day of being arrested in North Texas. Paktyawal had been living in Texas since 2021 as his asylum application was pending with the authorities. He began working at an Afghan bakery in the Dallas area. According to reports, he was detained outside his apartment at 7 am on March 13 when he was on his way to drop his children to school. Paktyawal contacted his family from custody and told them that he was not well. He was admitted to the hospital at 11.45 pm. The next morning, relatives were told that he was undergoing treatment, but by noon on 14 March, they were informed that Paktyawal had died. He has a wife and six children, one of whom is a US citizen.

Who was Mohammad Nazir Pakhtyawal??

According to AfghanVac, Paktywal began serving in the military in Afghanistan in 2005. He served for more than a decade as an Afghan Special Forces soldier. During the War in Afghanistan, he served with U.S. Army Special Forces units, including the 3rd Battalion, 3rd Special Forces Group (Airborne) in Paktika Province.As soon as the American army left Afghanistan, his family was evacuated by America. According to ICE, he entered the US through Washington Dulles International Airport on August 21, 2021, where he was paroled into the country by an immigration officer. His parole authorization expires on Aug. 20, 2025, the agency said in a news release.ICE said he was arrested because his legal status had expired. AfghanEvac said he has completed his asylum interview and has work authorization and a Social Security number. He was not in the country illegally and was in the process of complying with immigration formalities. ICE said he had no medical history when he was arrested and was immediately taken to the hospital after complaining of difficulty breathing. His brother Nasir Paktyawal said, “He was a hero to his family, his people and his country,” referring to his decade-long military service and cooperation with the U.S. military. Mohammed Nazir Paktyawal was arrested by local authorities in September 2025 on felony charges related to Supplemental Nutrition Assistance Program fraud and then in November on theft charges. AfghanAvac said the arrests did not result in criminal charges and he was released.

Many performers used the Academy Awards red carpet and stage on Sunday to not only protest the Trump administration’s immigration policies but also to advocate for Palestinian liberation, adding to the surge of artist-driven activism at the entertainment awards show.The appearance of “BE GOOD” and “ICE OUT” pins at the Academy Awards drew less attention than at last month’s Grammys, but some attendees wearing protest apparel used the Oscars to highlight other political causes.

anti-Iran war and free palestine badge

“No to war and no to liberating Palestine,” actor Javier Bardem said on stage before presenting Best International Feature Film.They wore a patch that read, “No a la Guerra”, the same anti-war slogan they used more than two decades earlier to protest the Iraq War, and a badge featuring a cartoon figure called Handala, which is seen as a symbol of Palestinian identity.Australian actor Guy Pearce wore a “Free Palestine” pin. In December, the Oscar winner apologized for a series of anti-Semitic social media posts, which he said he had inadvertently reposted as part of his support for the Palestinian cause.British actress Charitra Chandran was among those wearing red enamel Artists4Ceasefire badges during the ceremony, which called for an immediate and permanent ceasefire in Gaza, humanitarian aid for civilians and the release of all hostages, Forbes reported. “What we’re asking for is a ceasefire in Gaza, I feel like I’m very fortunate to have a platform and it’s the least I can do to use it,” Chandran told The Hollywood Reporter on the red carpet. He stressed the importance of continued public attention to civilian suffering.Hundreds of Palestinians have been killed in Israeli attacks since a ceasefire took effect in October, according to Gaza’s Hamas-run health ministry. Israel has said it is responding to the ceasefire violations.

anti-ice badge

Malgosia Turzanska, the Polish-American costume designer nominated for Hamnet, carried an ‘ICE OUT’ pin on her dress, as did singer Sara Bareilles, while Glennon Doyle took a more visible approach, shamelessly carrying a ‘F**K ICE’ purse.Trump’s travel ban on Palestinian forces leads actor nominated to stay out of OscarsMotaaz Malhis, lead actor hind ki awaaz rajabwhich was nominated for Best International Feature, was unable to attend the ceremony after being barred from entering the United States under a travel ban initiated by Donald Trump’s administration. Just days before the ceremony, Malhis revealed the news in an emotional Instagram post. He wrote, “Three days left until the Oscars. Our film has been nominated for an Academy Award. I’m honored to play the lead role in a story the world wanted to hear.” “But I will not live there. I am not allowed to enter the United States because of my Palestinian citizenship.” The mother of the film’s subject, Wissam Hamada, was also unable to attend. According to reports, he watched the ceremony from Greece, where his family was granted asylum, with the help of executive producer Amed Khan.

One grieving mother’s plea on gun violence shuts down the room

Another unforgettable moment came on stage when all the empty rooms Won the award for Best Documentary Short. Director Joshua Seftel invited Gloria Cazares to the stage — the mother of nine-year-old Jackie Cazares, who was killed in the 2022 Robb Elementary School shooting in Uvalde, Texas. “My daughter Jackie was nine years old when she was murdered in Uvalde. Since that day, her bedroom has been frozen in time,” Cazares told the audience. “Jackie is more than just a headline. She is our light and our life.” The emotional tribute brought the Dolby Theater to a silence and then a standing ovation — a reminder that even Hollywood’s biggest night can’t escape the weight of real-world tragedies.

Mr. Nobody Against Putin wins best documentary, it’s parallel to US politics

The Best Documentary category brought more social commentary. David Borenstein, one of the directors of “Mr. Nobody Against Putin,” said the documentary is about “how you lose your country.”This happens through “countless small acts of consent”, Borenstein said, such as “when a government murders people on the streets of our major cities” or when “oligarchs take over the media”.He said, “We all face a moral choice, but fortunately, none is more powerful than you think.”

Donald Trump defended a controversial fundraising email from a pro-Trump political action committee that used a photo of a solemn military transfer ceremony, brushing aside criticism and attacking a reporter who questioned him about it.Many were angry about the email, which used a photo of a stately transfer Trump attended last week wearing a campaign baseball cap.An email sent Thursday by the pro-Trump PAC Never Surrender Inc. showed a photo of the president saluting the casket of a fallen soldier during last week’s dignified transfer ceremony for six American soldiers killed in an Iranian drone strike in Kuwait. The message promoted a new “national security briefing subscription” and included several links asking supporters to donate, The Independent reported. In the emails, recipients were told that members would receive Trump’s “private national security briefings” and “unfiltered updates on the threats facing America”, including warnings about foreign adversaries, border security, and what the message described as “deep state subversion” and media cover-ups. The use of the transfer ceremony image immediately drew reaction from Democratic lawmakers and veterans groups, who argued that the moment should not be used for political fundraising.On Sunday night, Trump spoke to reporters aboard Air Force One for about 20 minutes, when an ABC News reporter confronted him about the email and asked if it was appropriate. When Trump was asked if it was appropriate, he said, “I do” and then attacked the reporter, Mediaite.com reported.Reporter: Mr. President, your PAC sent out a fundraising email a few days ago, and it’s being criticized for using your official White House photos in the dignified transfer.And the PAC is also promising access to secret briefings—President Donald Trump: Well, I was on an honorable transfer, unlike many others.Reporter: Do you think this is an appropriate email to send?President Donald Trump: I do.Reporter: -Your critics are saying that you are fundraising-President Donald Trump: I haven’t seen it. I mean, somebody puts it out. We have a lot of people working for us.But there is no one better than me for the army. And you just have to look at the polls. Pay attention to the election results. Look what kind of votes we get. Look at all the numbers. As it has been said, there has been no president in the army greater than me.Who are you with?Reporter: ABC NewsPresident Donald Trump: One of the worst, most fake, most corrupt.Reporter: Would you comment on the dead soldiers?President Donald Trump: You know what ABC News is, I think it’s probably the most corrupt news organization on the planet. I think they are terrible.Reporter: Can you give any comments on the soldiers?President Donald Trump: Well, I don’t want anything else from ABC.

Explosions echoed across the Ukrainian capital on Monday as air defenses fired a volley of Russian projectiles into Kiev in a rare daytime attack.AFP reported that air defense batteries were firing repeatedly as the attack occurred during rush hour as lightning flashed across the sky and smoke billowed over the city. As Ukrainian forces attempted to intercept the incoming missiles and drones, residents ran for cover.Russia has stepped up long-range drone and missile attacks in recent months, with primary targets including energy infrastructure.Kyiv Mayor Vitaliy Klitschko said debris from the downed drone fell in the center of the capital, but there were no immediate reports of a fire or casualties.“Drone debris has fallen in the very center of the capital city. There are no fires or casualties. The enemy attack on Kiev continues,” Klitschko wrote on social media as further explosions were heard.Ukraine’s air force also warned of a “high-speed target” approaching the capital from the north, near the border with Russia.Meanwhile, Russian officials said Ukraine carried out a major drone attack targeting Moscow over the weekend.Moscow Mayor Sergei Sobyanin said air defense systems intercepted waves of Ukrainian drones heading toward the capital.“Over the past two days, the Air Defense Forces have destroyed about 250 enemy UAVs on the way to Moscow and on the second line towards Moscow,” Sobyanin said on Telegram.

US peace efforts stalled due to Middle East war

The escalation comes as US-led efforts to bring Kiev and Moscow to the negotiating table have stalled amid escalating conflict in the Middle East following a 2026 Iran-Israel war.Russia’s full-scale invasion of Ukraine in February 2022 – the Russian invasion of Ukraine – sparked Europe’s deadliest conflict since World War II, displacing millions and killing hundreds of thousands of soldiers and civilians on both sides.The war in Ukraine – and now the conflict involving Iran – has underlined the growing role of relatively cheap drones capable of striking targets far from the battlefield, including energy facilities and major cities, at a fraction of the cost of conventional combat aircraft.While Russia has attacked Ukraine with missiles, artillery and drones, Kiev has responded swiftly with long-range drone strikes and sabotage campaigns inside Russian territory, targeting military commanders, oil refineries and energy infrastructure.

While the Gulf region tops some of the world’s largest oil reserves, the prices we pay at the pump are not immune to the global chaos. Following recent changes in international policy and rising tensions involving major energy players, global oil benchmarks have surged. From the boardrooms of Wall Street to the gas stations of Dubai and Doha. For residents of the UAE and the wider GCC, this is not just a headline, it is a direct hit to monthly budgets as regional fuel committees step in to align local prices with the increasingly volatile global market.

Global oil prices cross $150

Oil markets have surged in recent days as rising tensions between Iran, the United States and Israel raise fears of supply disruptions across the Middle East. Benchmark Brent crude neared $105 a barrel, rising sharply as traders worry the conflict in the region could impact energy infrastructure and shipping routes.One of the biggest concerns is the Strait of Hormuz, the narrow channel through which about a fifth of the world’s oil supply passes every day.Any disruption in tanker traffic through this route could push oil prices even higher, which would have an impact on global energy markets.

What is Brent Crude Oil and why does it matter?

Global oil prices are often measured using Brent crude, one of the most widely used benchmarks for crude oil trading around the world.Brent crude represents oil extracted from fields in the North Sea, but its price has become the global reference point for energy markets. About two-thirds of internationally traded crude oil is priced using the Brent benchmark.Because Brent reflects global supply and demand, its price directly affects how much countries pay for refined fuels such as gasoline, diesel and jet fuel.When Brent crude rises sharply, it often causes fuel prices to rise in many countries, including countries that produce oil themselves.

Will petrol prices increase in UAE?

For UAE residents, rising oil prices could translate into higher costs at petrol stations.Since 2015, fuel prices in the UAE have been adjusted monthly by the UAE Fuel Price Committee, which reviews international crude oil prices along with refining and delivery costs.Because of this system, petrol prices in the UAE move broadly in line with global oil markets. If crude oil prices remain high for several weeks, the increase is usually reflected in the next monthly fuel price update.This means motorists across the country are keeping a close eye on oil markets to see whether the recent surge will impact the next petrol price announcement.

How much can petrol cost UAE residents?

Fuel prices in the UAE have fluctuated throughout 2025 and early 2026 depending on global oil trends.Analysts say that if oil continues to trade above $100 per barrel, petrol prices may rise again in the coming months. Based on past price patterns, if crude moves towards $110-$120 per barrel, petrol in the UAE could potentially move towards the Dh3.60 to Dh4 per liter range.However, the exact price will depend on a number of factors including refining costs, shipping expenses and currency fluctuations. Because prices are reviewed every month, any continued bounce in the oil markets could affect fuel prices in the next pricing cycle.

What about the rest of the Gulf countries?

The impact of rising oil prices is not limited to the UAE. Fuel pricing policies vary across the Gulf Cooperation Council, meaning residents of other Gulf countries may experience different impacts.In saudi arabiaPetrol prices are reviewed from time to time by the government and national oil giant Saudi Aramco. While the kingdom produces the world’s largest amount of oil, fuel prices can still adjust based on global market trends and domestic economic policies.Meanwhile, Qatar, Oman and Bahrain also regularly review petrol prices; Adjustments are often linked to international oil benchmarks such as Brent crude. This means that a prolonged increase in global oil markets could gradually increase fuel prices in these countries.In Kuwait, petrol prices are more heavily subsidized than in some of its neighbours, which may help insulate residents from rapid market fluctuations. However, the continued rise in global crude oil prices may still influence future policy decisions.

looking ahead

If Brent crude continues to trade above $100 a barrel for a long time, analysts say gasoline prices in many Gulf countries could gradually rise in the coming months. Additionally, higher oil revenues could strengthen government finances across the region.Ultimately, the direction of fuel prices will depend on how the geopolitical situation develops – particularly around the Strait of Hormuz, one of the world’s most important energy corridors.For now, motorists in the UAE and the GCC are keeping a close eye on global oil markets, as the next move in crude oil prices could determine how much they pay at the pump in the coming weeks.

US President Donald Trump on Sunday denied reports of differences with Israeli Prime Minister Benjamin Netanyahu, calling them ‘fake news’.Speaking to reporters aboard Air Force One, Trump said, “That was the second fake news – I had an argument with my wife. No, we’re really good. And he’ll tell you that we’re leading the whole thing. They may say it or not. It doesn’t matter to me. “My relationship with Bibi Netanyahu is extraordinary.”He added, “We get along really well. He will tell you that we are leading the whole thing. He can’t say no, the main thing is to get it done. My relationship with Bibi Netanyahu, I would say, is really extraordinary.”The comments come as the United States and Israel continue their military operations against Iran, a conflict that has destabilized the Middle East and disrupted global markets.According to officials, the bombing has displaced more than three million people and caused significant damage to infrastructure, while fuel prices continue to rise around the world.Earlier, The New York Times had said in a report that Trump and Netanyahu share short-term military goals that include destroying Iran’s missile systems, nuclear facilities, naval forces and weapons production. However, their long-term objectives appear to differ. Trump has focused on weakening Iran and pushing the country toward negotiations, while Netanyahu reportedly wants regime change and an end to Iran’s regional influence.At the same time, Trump is also facing domestic pressure. With the midterm elections approaching, public support for the conflict remains low, with many Americans wary of a prolonged war.Experts suggested that Trump might seek a quick solution rather than pursuing full-scale regime change once Iran’s military capabilities are sufficiently diminished.

The ongoing conflict between the United States, Israel, and Iran has escalated into a major regional crisis, with military attacks and counter-attacks spreading to several countries in the Middle East. What began with coordinated US and Israeli strikes targeting Iranian military infrastructure quickly turned into a broader confrontation involving missile barrages, drone warfare and cross-border air strikes.

The initial phase of the war saw widespread attacks on Iran’s air defense systems, missile launch facilities and military installations. Iranian officials reported heavy damage in several cities, while the attacks also resulted in the assassination of the country’s supreme leader, Ali Khamenei. Following his death, Iran appointed his son Mojtaba Khamenei as the new supreme leader, signaling Tehran’s continued hardline response to the attacks.

Iran retaliated by firing ballistic missiles and drones at Israeli cities and US military facilities across the region. Many Gulf countries hosting US bases soon found themselves involved in the conflict as missiles and drones crossed their airspace or targeted infrastructure within their territory. Countries including the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait reported interceptions of incoming drones and missile threats.

The conflict spread beyond the Gulf as the Lebanese militant group Hezbollah opened another front by launching rockets into northern Israel. Israeli forces launched airstrikes targeting Hezbollah positions in Lebanon, adding another layer to an already complex war.

A major strategic flashpoint in the crisis has been the Strait of Hormuz, a narrow waterway through which much of the world’s oil supply passes. The conflict has disrupted shipping through the corridor, causing sharp volatility in global energy markets and raising fears of broader economic shocks.

Amid the ongoing hostilities, US President Donald Trump has said Washington is in discussions with Tehran, but he believes Iran is not ready to reach a deal yet. He has also claimed that American and Israeli operations have severely weakened Iran’s military capabilities, including its missile stockpile and drone production capacity.

Meanwhile, Iran’s Foreign Minister Seyed Abbas Araghchi said that nuclear material at Iranian facilities following the attacks is currently buried under debris, adding that any potential recovery would take place only under the supervision of the International Atomic Energy Agency.

With missile exchanges continuing, regional states increasingly affected and global markets reacting volatilely, the conflict has raised serious concerns about a prolonged war and its impact on international security and energy supplies.

The UAE, facing repeated attacks from Tehran, on Sunday ordered the arrest of 35 individuals, including 19 Indians, for publishing video clips on social media containing misleading and fabricated content using AI amid rising regional tensions due to the Israel-US-Iran war.According to a report by UAE’s official news agency WAM, the accused have been sent for speedy trial.Follow live updates on Iran warThe move comes as Iran’s strikes have kept the UAE’s major cities, Dubai, Sharjah and the capital Abu Dhabi, within its potential target range.Individuals of various nationalities have been accused of making videos of incoming missiles and drones, including their passage and interception, and circulating them online with added commentary and sound effects, which authorities said caused panic and increased public concern.Also read: Major fire breaks out at Dubai International Airport after drone attackThe latest list includes 25 persons of different nationalities, including 17 Indians, who have been booked under various sections. This is separate from the earlier case involving 10 people, including two Indians, who were named on Saturday and ordered to be arrested.

According to a statement issued by Attorney-General Hamad Saif Al Shamsi, the action followed intensive monitoring of digital platforms to prevent the spread of fabricated information and artificial content aimed at inciting public disorder and undermining stability.“The investigation and electronic surveillance revealed that the defendants were divided into three groups who committed various acts. These included the publication of genuine clips related to current events, creation of clips using AI and promoting acts of military aggression while glorifying their leadership and military actions,” the statement said.The first group, consisting of 10 accused, published and circulated authentic video clips allegedly showing the passage and interception or resultant impact of missiles in the country’s airspace. They also filmed gatherings of people witnessing these developments and added commentary and sound effects suggesting active aggression, which officials said could cause anxiety and panic among the public.Officials said such footage risks exposing the country’s defensive capabilities and enabling hostile accounts to push misleading stories. The group includes five Indians, one Pakistani, one Nepali, two Filipinos and an Egyptian.Another group shared fabricated visual content generated using AI or re-circulated footage of events outside the UAE falsely claiming to be taking place within the country. The clips depict synthetic scenes of explosions and missile attacks, often including national flags or specific dates to make the false claims appear credible.The group includes seven persons, five Indians and one each from Nepal and Bangladesh.The third group, consisting of six accused, allegedly published material glorifying a hostile state and its political and military leadership, and portraying its regional military aggression as achievements. Officials said the posts praised leaders of that state and promoted propaganda narratives harmful to national interests.Of the six accused in this group, five are Indians, while one is Pakistani.Additionally, two other men, both Indians, are also facing charges of similar offences, the statement said.Earlier on Saturday, a report by the UAE’s official news agency WAM said that the Public Prosecution has started questioning the 10 defendants and ordered their detention.Attorney-General Shamsi said such acts are offenses punishable with imprisonment of at least one year and a minimum fine of AED 100,000.“Such incidents have been used to spread misinformation with the intention of deliberately misleading the public while undermining national security, order and stability,” he said.Shamsi said some of the accused circulated AI-generated footage that falsely suggested explosions, attacks on key sites or large-scale fires with smoke billowing across various parts of the UAE.“Incidents also include exploiting children’s emotions in videos that pose false security threats. Other clips claim to destroy military facilities within the country or attribute incidents to foreign countries at locations in the UAE with the aim of misleading public opinion and spreading anxiety,” he said.

India’s stock markets have suffered a major blow after geopolitical tension. middle east A wave of global financial uncertainty began and accordingly market The recent selloff wiped out nearly $240 billion of investors’ wealth in just one week, according to data compiled from the Bombay Stock Exchange and the National Stock Exchange of India. The selloff shows how quickly international conflict, in this case the Iran versus US-Israel war, can spill over into financial markets, especially in economies like India that are deeply linked to global trade, energy supply chains and foreign investment flows.Reserve Bank of India Governor Shaktikanta Das had earlier highlighted the risks that global geopolitical tensions pose to financial stability. “Elevated geopolitical tensions and global financial market volatility remain key risks to the economic outlook,” Das said during the press conference of the 2024 Monetary Policy Committee held at the Reserve Bank of India headquarters in Mumbai after the RBI monetary policy announcement.The sudden collapse of funds has sent the entire brokerage street into shock, with benchmark indices falling sharply and investors struggling to reassess risk exposure. Analysts say the turmoil highlights the delicate balance between global geopolitics and financial markets, where even distant conflicts could jolt emerging economies.

Sudden blow to investors’ wealth in India amid Iran vs US-Israel war

The latest market meltdown has wiped billions of dollars off the value of companies listed on Indian exchanges. According to reports, the combined market capitalization of Indian equities fell dramatically as investors rushed to sell risky assets amid rising geopolitical tensions. The losses are part of a broader trend that has seen trillions of rupees wiped off investors’ wealth since the conflict began, reflecting widespread panic in financial markets.Nilesh Shah, managing director of Kotak Mahindra Asset Management Company, warned that global uncertainty generally forces investors to reduce investments in risky markets. “Markets dislike uncertainty, and geopolitical developments could lead to sharp changes in capital flows as investors reevaluate risk appetite,” Shah had said during the 2023 Kotak Mutual Fund Annual Investor Conference, where global macroeconomic risks and market outlook were discussed with institutional investors.

Stock markets generally react quickly to geopolitical instability and the current recession is no exception. Traders and institutional investors alike have adopted a cautious stance, leading to heavy selling pressure in sectors ranging from banking and automobile to infrastructure and aviation.

Oil prices rising due to Iran vs US-Israel war

At the center of the market turmoil is the escalating conflict in West Asia, which has sent global oil prices soaring and raised fears of a broader economic downturn. The war has already pushed crude oil prices above $100 a barrel, raising concerns about inflation, energy security and trade deficits for oil importing countries like India.Dr Indranil Pan, chief economist at Yes Bank, had warned that rising crude oil prices could have macroeconomic consequences for India. “A sustained rise in crude oil prices could widen India’s current account deficit and also lead to inflationary pressures for the economy,” Pan had said in Yes Bank’s 2023 Macro Economic Outlook presentation to investors and analysts.India is the world’s third-largest importer of crude oil, meaning any sharp rise in energy prices directly impacts its economy. Higher oil costs increase transportation and manufacturing expenditures, ultimately raising consumer prices and weakening economic growth prospects. The situation is worsened by fears of disruption to the strategic shipping route, the Strait of Hormuz, through which a significant portion of the global oil supply passes. If the conflict escalates and shipping routes are disrupted, energy prices could rise even faster.

Sensex And nifty Iran vs Iran falls amid panic selling over US-Israel war

The impact of these developments is clearly visible on India’s major stock indices. Both BSE Sensex and Nifty 50 have fallen sharply in recent trading sessions as investors rushed to reduce exposure to riskier assets. At one point, the Sensex fell by more than 1,300 points in a single session, while the Nifty also fell sharply.According to Kranti Bathini, director of equity strategy at Wealthmills Securities, geopolitical tensions along with rising oil prices weigh heavily on investor sentiments. “When crude oil prices rise sharply due to geopolitical tensions, it creates uncertainty about inflation and growth expectations, which typically leads to volatility in equity markets,” Bathini said in a 2024 Wealthmills Securities Investor Strategy Note.

The selloff dragged both indices near one-year lows and pushed them into technical correction territory, meaning they had fallen more than 10% from their recent peaks. For investors, the sudden downturn is a reminder of how quickly markets can change direction when geopolitical risks increase.

Foreign investors pull out billions of dollars from India amid Iran vs US-Israel war

Another major reason for the market decline is the massive withdrawal of foreign investments from Indian equities. Foreign portfolio investors (FPIs) have pulled billions of dollars from the market in recent weeks as global uncertainty increases. In the first half of March, foreign investors pulled out about ₹52,704 crore (about $5.7 billion) from Indian stocks.Global investors often shift capital out of emerging markets during geopolitical crises, according to Andrew Holland, chief executive officer of Avendus Capital Public Markets Alternate Strategies. “Periods of increased geopolitical risk typically push investors toward safer assets and developed markets, which may lead to capital outflows from emerging economies,” Hollande said during the 2023 Avendus Capital Global Markets webcast for institutional investors.Such capital outflows could increase market volatility as foreign institutional investors have large positions in Indian equities. When they sell shares rapidly, stock prices can fall rapidly. The withdrawals have also put pressure on the Indian rupee, which weakens as foreign capital leaves the country.

Widespread losses in all sectors in India amid Iran vs US-Israel war

The decline in the market is not limited to any one sector. Instead, losses have been widespread across the economy, reflecting a broader wave of risk aversion among investors. Financial stocks, which typically dominate Indian indices, have been worst affected. Banking stocks and financial institutions fell sharply as investors worried about the potential impact of slowing economic growth.Automobile companies have also suffered heavy losses, with the sector recording one of its worst weekly performances in years. Rising fuel costs and economic uncertainty could reduce consumer spending on large purchases such as vehicles. Infrastructure and aviation stocks have also come under pressure, as investors anticipate higher operating costs associated with rising energy prices.

Global markets are also feeling the heat of Iran vs US-Israel war

The turmoil in India’s markets is part of a broader pattern of volatility in global financial markets. Whenever geopolitical conflicts intensify, investors shift money towards safe assets such as gold, US government bonds and the US dollar.

Emerging markets, including India, often see capital outflows during such periods. This global “risk-off” sentiment has contributed to selling pressure in Indian equities.

Domestic investors provide some support amid Iran vs US-Israel war

Despite selling by foreign investors, domestic institutional investors, including mutual funds and insurance companies, have continued to buy stocks in an effort to stabilize the market. However, analysts say domestic purchases alone may not be enough to offset huge foreign outflows if geopolitical tensions persist.Retail investors, who have played a major role in India’s market rally in recent years, are also taking a wait-and-see approach amid the current volatility.

Experts urge investors to remain calm amid Iran vs US-Israel war

Market regulators and financial experts have appealed to investors not to panic in the current period of uncertainty. Historically, geopolitical crises often trigger temporary market corrections rather than long-term structural declines. Analysts say markets usually stabilize once the geopolitical situation becomes clear.Investors are being advised to focus on long-term fundamentals rather than short-term volatility. The future direction of Indian markets will largely depend on developments in the Middle East conflict and global energy prices. If tensions ease and oil prices stabilize, the market could recover relatively quickly. However, prolonged conflict could lead to sustained instability, especially if energy supply routes are disrupted or inflation rapidly increases.The growing influence of geopolitics on the global economy has often been emphasized by Kristalina Georgieva, Managing Director of the International Monetary Fund. “Geo-economic fragmentation and geopolitical tensions are creating new uncertainties for the global economy,” Georgieva said during her opening remarks for 2023 at the IMF-World Bank annual meeting in Marrakesh.At the moment, the $240 billion decline in market assets is a stark reminder of the interconnected nature of the global economy, where conflicts thousands of kilometers away can rapidly shake financial markets in one of the world’s fastest-growing economies. As investors deal with this uncertain environment, the coming weeks will determine whether the recent selloff represents a temporary setback or the beginning of a deeper market correction.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)