How will your portfolio react to a World War 3?

Top of the Morning

Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Monday, October 7, 2024. My name is Nelson John. Let's get started.

Last week was a bit of a disaster for the markets: the Nifty fell 5% over the previous four trading sessions. This selling-heavy trend was in contrast to a bullish market from the prior week, which saw Nifty hitting a record high. Ram Sahgal writes that foreign investors sold heavily, booking profits. Meanwhile, a stimulus by the Chinese government into its economy too attracted investors. Ram analyses the current trends, and speaks to market experts on when a bounceback is expected.

As tensions in West Asia escalate, you might be worried about your portfolio. But despite historical volatility, stock markets have shown resilience in the face of geopolitical tensions. Notably, the US stock market has, on average, only dipped 5% during major events since World War II — and recovered quickly. Abhishek Mukherjee writes that the pattern is similar for Indian markets. The NSE Nifty in India quickly rebounded after initial losses following the Russia-Ukraine conflict, as well as the tensions in Gaza. However, for India, the primary concern amid such conflicts remains the impact on oil prices. India has a significant dependence on oil imports, which are crucial to its macroeconomic stability. If any war-related tensions lead to prices of oil rising, the markets may not take to it very kindly.

India’s shipping ministry is setting new guidelines that could significantly benefit domestic shipping companies. They're proposing that international container lines operating in Indian waters reserve at least 5% of their cargo space for local operators. This initiative is designed to bolster Indian container lines and non-vessel operating common carriers — companies that arrange shipments but don't own the vessels themselves, reports Subhash Narayan. Currently, Indian entities handle less than 1% of the nation’s trade, a figure this policy aims to increase by enhancing their access to global markets. This policy also supports the domestic shipbuilding industry and lessens India’s dependency on foreign shipping services, which often leads to high freight charges during global disruptions.

RP Sanjiv Goenka Group’s music label Saregama India is eyeing a big move into the film industry by potentially snagging a majority stake in Karan Johar’s Dharma Productions. This isn't a done deal yet—sources told Lata Jha that the deal is still up in the air. This follows its acquisition of digital entertainment player Pocket Aces Pictures. Why the interest in Dharma Productions? Well, Dharma’s been feeling the heat from the unpredictable box office, pricey star fees, and shrinking revenue from traditional rights deals. These challenges are pushing it to find a financial lifeline to keep up its operations.

Indians eager to travel abroad face a mixed bag of options, with the Indian passport ranking 81st globally. It offers visa-free access to 29 countries and visa-on-arrival in 28 others. However, the rise of e-visas and Electronic Travel Authorizations brings both convenience and potential pitfalls. For a smoother experience, e-visas are increasingly popular among Indian tourists. These allow you to apply from home without visiting an embassy. But remember, these come with variable processing times and fees. Common pitfalls include documentation errors leading to application rejections. It's critical to ensure your application details match your documents perfectly and to apply well in advance of your travel. Read this piece by Mint Money’s Jash Kriplani if you want to streamline your international travel by using e-visas.