Indian Stocks Feel the Heat from Global Events and Rising Oil Prices

As global events like West Asia conflicts and US Federal Reserve policy signals take center stage, certain Indian stocks are caught in the crossfire.

One such stock is InterGlobe Aviation (NSEI:INDIGO), which operates IndiGo, India's largest airline. The company generates nearly all its revenue from air transportation services, with a market cap of about ₹1.93 trillion.

The recent net losses and reliance on external borrowings raise concerns about the company's future capacity plans in the face of fuel, currency, and inflation risks. A large order for over 1,000 LEAP engines may amplify both upside and downside if energy prices remain volatile.

Another stock affected is Reliance Industries (NSEI:RELIANCE), a Mumbai-based conglomerate with operations spanning oil and gas, refining, petrochemicals, retail, telecom, digital services, media, and new energy. The company's large refining and petrochemical complex is exposed to crude costs, shipping bottlenecks around the Strait of Hormuz, and export disruption.

Reliance Industries' net income fell to ₹209,460 million in the latest quarter despite higher sales, with margins already compressed from 8.3% to 6.6%. The stock trades at a premium to some fair value estimates while carrying funding risk from relying entirely on external borrowings.

Bajaj Auto (NSEI:BAJAJ-AUTO) is also impacted by rising macro and geopolitical stress, with management dealing with supply chain disruption, fuel constraints, and sharp commodity inflation in metals critical for two wheelers and EVs. The company relies fully on external borrowings and a dividend that is not well covered by free cash flow.