Why the Iran War is Hitting Indian Stocks Harder Than Other Markets

Watch on YouTube ↗  |  May 08, 2026 at 08:02  |  17:10  |  Bloomberg Markets
Speakers

Summary

Lakshmi Iyer of Bajaj Finserv discusses the impact of the Iran war on Indian stocks, highlighting earnings resilience but warning of crude risks. She favors financials and commercial real estate, and recommends diversifying into US and EM ex-Japan equities. She cautions against small cap euphoria and sees Indian equities at risk if crude remains high.

  • Indian earnings season showed beats but forward estimates are being cut.
  • Lakshmi Iyer is bullish on the financial sector (BFSI) due to stable interest rates and strong earnings.
  • She sees opportunity in grade-A commercial real estate in CBD areas driven by GCC demand.
  • She warns that small cap euphoria may not be sustainable.
  • She recommends US equities via S&P/Nasdaq ETFs for innovation and currency diversification.
  • She suggests MSCI Emerging Markets ex-Japan for diversification.
  • She identifies Indian equities as most at risk if crude oil stays elevated.
  • Rupee is vulnerable but currently stable.
Trade Ideas
Lakshmi Iyer Group President, Investments, Bajaj Finserv 3:28
Long Indian financials on earning tailwinds.
The Indian BFSI sector (large banks and NBFCs) is performing well with strong earnings, and if interest rates remain stable, tailwinds can continue into this and next quarter, making it an attractive investment.
Indian financial sector HIGH
Lakshmi Iyer Group President, Investments, Bajaj Finserv 10:04
Bullish on Indian grade-A offices.
Grade-A office spaces in Indian CBD areas are seeing strong demand from GCCs, with supply not keeping pace, making this a bullish opportunity for investors.
Indian commercial real estate (grade-A offices) HIGH
Lakshmi Iyer Group President, Investments, Bajaj Finserv 13:56
Long US equities for innovation.
Given the US being the hub of innovation, investors should diversify into US equities via S&P 500 or Nasdaq ETFs for growth and currency diversification.
SPY QQQ MED
Lakshmi Iyer Group President, Investments, Bajaj Finserv 14:05
Long emerging markets ex-Japan.
Investors should hold MSCI Emerging Markets ex-Japan for diversification benefits and exposure to growth outside India.
EEM MED
Lakshmi Iyer Group President, Investments, Bajaj Finserv 16:16
Indian equities at risk from crude.
If crude oil remains elevated, Indian equities are the most at risk asset class due to the energy import dependency, making further upside uncertain.
NIFTY 50 LOW
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This Bloomberg Markets video, published May 08, 2026, features Lakshmi Iyer discussing Indian financial sector, Indian commercial real estate (grade-A offices), SPY, QQQ, EEM, NIFTY 50. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lakshmi Iyer  · Tickers: Indian financial sector, Indian commercial real estate (grade-A offices), SPY, QQQ, EEM, NIFTY 50