New Delhi, March 2 -- The latest escalation in the Middle East has materially raised global risk levels - but according to JM Financial, the economic fallout may not be evenly distributed. India, more than many of its global peers, stands directly exposed to the energy shock stemming from a potential disruption in the Strait of Hormuz.

In its March 1 strategy note titled "Middle East escalation: Rising oil risk for Indian markets", JM Financial argued that crude has once again become the dominant macro variable for Indian equities. The shift from earnings-driven to oil-driven markets could leave India disproportionately vulnerable.

The coordinated US-Israel strikes on Iran mark what JM Financial describes as a sharp escalation - moving ...