Indian Markets Shrug Off US-Venezuela Tensions, Prioritize Domestic Factors

• Indian equity markets largely ignored US strikes on Venezuelan facilities, trading higher due to focus on domestic interest-rate sensitivities.
• Nifty saw gains in banking and auto stocks (1-2%), viewing Venezuela as a risk-premium event, not a trigger for a sustained macro shock.
• Venezuela's limited global oil supply (1%) and production constraints mean the situation is unlikely to trigger rapid changes in oil supply or inflation.
• Brent crude remained stable around USD 61.1/barrel; analysts believe oil markets react only to direct confrontations between large economies.
• India's resilience stems from diversified crude sourcing, nearly USD 700 billion in forex reserves, and limited direct corporate exposure to Venezuela.

Why It Matters: Indian markets prioritize domestic economic factors over geopolitical events with limited direct impact.