Global investors may be underpricing the impact of a conflict between Israel and Iran, market watchers warned on Monday, as stocks rallied despite escalating warfare in the Middle East. The two regional powers continued trading fire on Monday, marking the fourth consecutive day of fighting since Israel launched airstrikes against Iran last week.

Indian stock markets opened on a flat note in green on Monday, reflecting cautious investor sentiment amid ongoing tensions between Iran and Israel.

Paint manufacturers such as Asian Paints, Berger Paints, and Kansai Nerolac source around 50% of their raw materials from crude-based derivatives like resins and solvents. These input costs are highly sensitive to crude fluctuations.

Indian benchmark indices edged higher on Monday, rebounding after two straight sessions of losses, despite lingering concerns over rising geopolitical tensions between Israel and Iran that continued to impact global market sentiment.

U.S. stocks were sharply down Friday, after Israel launched strikes on Iran's nuclear sites. But major benchmarks were off their morning lows.