Markets

Adani Ports Shares Fall 5% Amid Concerns Over Israel-Hamas War

Adani Ports shares were trading 42.25 points or 5.09 per cent down at Rs 788.50 on the National Stock Exchange (NSE). It was one of the top losers among Nifty 50.

Adani Ports
info_icon

Shares of Gautam Adani-led Adani Ports fell over 5 per cent amid escalating tensions after the Palestinian militant group Hamas launched an attack on Israel. The Israel-Hamas war has sent shockwaves throughout the international financial markets.

Adani Ports and Special Economic Zones (APSEZ) controls the Haifa Port in northern Israel. The company had acquired the port earlier this year for a total consideration of $1.18 billion.

APSEZ shares closed 42.25 points or 5.09 per cent down at Rs 788.50 on the National Stock Exchange (NSE). It was one of the top losers among Nifty 50.

On 7 October, Hamas initiated its most significant military attack against Israel. In response, Israel launched a series of retaliatory airstrikes on Gaza that persisted into Sunday, 8 October. While the conflict isn’t showing any cues for easing down, the impact on Asian stock market might be a concern for investors.

Advertisement

Crude oil prices surged over 5 per cent in early Asian trade. A report by PTI indicated that Indian exporters shipping goods to Israel may face higher insurance premiums and shipping costs.

"For merchandise exports of India, the war may lead to higher insurance premiums and shipping costs. India's ECGC may charge higher risk premiums from Indian firms exporting to Israel," think tank Global Trade Research Initiative (GTRI) told PTI.

Trade disruptions could have a significant impact, warned Ajay Srivastava, co-founder of GTRI, should operations at Israel's three major ports—Haifa, Ashdod, and Eilat—be affected. These crucial ports are responsible for the handling of various commodities, including agricultural products, chemicals, electronics, machinery, and vehicles.

Advertisement

Most of the merchandise trade between India and Israel takes place via Eilat port. It ranks as the second-largest in terms of shipping containers and holds the distinction of being the largest for accommodating tourist cruise ships.

Advertisement

Advertisement

Advertisement

Advertisement