Morgan Stanley says the West Asia conflict could push India toward an $800 billion capital expenditure surge across energy, defence, fertilisers, and data infrastructure. The brokerage frames the conflict as a dual-edged event: a potential catalyst for domestic investment and a source of import-side risk. India imports a large share of its crude oil and fertilisers from or through the West Asia region. A prolonged or escalating conflict raises the cost and reliability of both, pressuring the current account and farming input costs at home. On the upside, Morgan Stanley sees the disruption accelerating India's push to build out domestic capacity in exactly those vulnerable sectors. Defence spending, energy self-sufficiency, and data infrastructure are the areas most likely to attract fresh capital if uncertainty in the region deepens. The net outcome depends on how long the conflict runs and whether global supply chains reroute around the region. Investors will watch oil prices and fertiliser import bills closely as the clearest early signals of which side of the trade dominates for India.
Indian startups raised $5.2 billion across 501 deals in H1 2026, down 9% in value but up 7% in deal count year-on-year, per the Inc42 Indian Tech Startup Funding Report. The drop is driven by fewer mega-rounds, while AI funding surged 317% and growth-stage deal activity hit a multi-year high.
The BSE Sensex fell 893 points and the Nifty 50 shed 279 points on June 30, 2026, wiping out roughly Rs 6 lakh crore in investor wealth in a single session. Both indices dropped 1.16%, closing at 76,200.68 and 23,824.10 respectively.
Kotak Mahindra Bank shares fell nearly 3% to Rs 397.6 after CEO Ashok Vaswani announced plans to exit the bank. Investor concern now centres on succession timing and whether the bank's ongoing digital and deposit-growth strategy will stay on track.
South Korea's Kospi dropped 3% at Monday's open while Japan's Nikkei fell 1%, as escalating US-Iran conflict triggered a broad risk-off move across Asian markets. South Korea's heavy reliance on Middle East oil imports makes it especially vulnerable to geopolitical shocks of this kind.
