Asian shares retreated on Friday as hawkish comments from some Federal Reserve officials and escalating geopolitical tensions put a dent in risk sentiment, while traders were also cautious ahead of U.S. jobs data due later in the day. The threat of supply disruptions owing to a prolonged conflict in the Middle East kept Brent futures above $90 a barrel.
Indian shipping companies are raising concerns as the escalating incidents in the Middle East threaten global trade. The Red Sea attacks by the Houthi rebels have led to increased shipping costs and disruptions in the supply chain. Indian exporters may see a drop of $30 billion in total exports in FY24. The Commerce Ministry will hold a meeting to strategize measures to mitigate the trade impact.
Samir Arora, Founder of Helios Capital, believes that India stands to gain from any reduction in flows to China. While he does not advocate for investors to completely divest from China and invest in India, he sees India as a logical beneficiary due to the frustration and disillusionment investors are experiencing in China. Arora also discusses the performance of different markets, his portfolio allocation strategy, and opportunities in the PSU sector.
