•Emkay Global Financial expects a sharp but temporary correction in Indian equities due to renewed US-Iran military action.
•The brokerage anticipates hostilities to end within 1-2 weeks, leading to a sharp market recovery, similar to past events.
•Short-term disruptions are expected, including severe dislocation of oil supplies, global supply chains, and Brent crude prices spiking to $90-100/bbl.
•Higher crude prices pose macro-financial risks for India, impacting currency, current account deficit, and domestic inflation.
•Emkay Global suggests sectors like upstream energy, metals, IT, pharma, and private banks may offer protection during this period.
