Arora expects the market to stabilise soon, noting that the recent weakness has been driven more by foreign fund flows than domestic fundamentals.

Investors struck a cautious tone on Monday, as an escalating conflict between Israel and Iran pushed oil prices higher and raised wider questions about the long-run impact.

The Longview Economics team drew parallels between how the oil market reacted to the Israel-Iran exchange of missiles in April 2024 and what's happening right now. "Recent Iran-Israeli conflicts have been relatively short lived.