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Below the Quote on Morning Market Views 23th June 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

"Even though the US bombing of Iran’s three nuclear facilities has worsened the crisis in West Asia, the impact on the market is likely to be limited. The uncertain factor now is the timing and nature of the Iranian response. If Iran targets and damage the US defence facilities in the region or hurts US military personnel seriously, the US response can be huge and this might further worsen the crisis. But the market assessment is that there are limits to what Iran can do against US and Israel. That’s why the early market responses - crude prices, US futures, absence of panic in Asian markets - have been muted. Even though the possibility of the closure of Hormuz Strait is a threat, it is important to understand that this has always been only  a threat and the Strait had never been closed. The fact is that the closure of Hormuz Strait will harm Iran and Iran’s friend China more than anyone else. The market construct continues to favour a ‘buy on dips’ strategy."

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