The Middle East conflict has sharply increased LNG prices by disrupting supply, especially from Qatar, driving up global and Thai electricity costs. Thailand should adopt flexible tariffs, boost clean energy, and improve efficiency.

Impact of Middle East Conflict on LNG Prices

The Middle East conflict has caused liquefied natural gas (LNG) prices to surge by over 91%, rising from USD 10.7 to USD 20.5 per million BTU between February and April. This spike was triggered by supply disruptions, particularly damage to Qatar’s Ras Laffan gas field, which accounts for 17% of its capacity, reducing global LNG supply by 3%. Recovery of this supply is expected to take 3–5 years. Persistent disruptions and high demand in Asia and Europe will keep LNG prices elevated, though increased U.S. production and alternative energy adoption should help balance supply and demand after two years.

Rising Electricity Costs and Tariff Implications

Thailand faces higher electricity generation costs due to increased LNG prices and supply disruptions. Imported natural gas costs push electricity prices up to around THB 4.9 per unit by the end of 2026. However, maintaining EGAT’s debt at THB 36 billion could moderate tariff rises to approximately THB 4.0 per unit in 2026–2027. Prolonged conflict or further damage could drive LNG prices to USD 36.1 per million BTU and tariffs near THB 5.7 per unit. Flexible tariff adjustments and energy management will be crucial to controlling costs.

Recommendations for Government and Consumers

The government should implement both short- and long-term strategies to manage electricity costs, including gradually adjusting tariffs, increasing energy imports, enhancing renewable energy capacity, and exploring small modular nuclear reactors. Public communication about energy costs is essential. Households and businesses must improve electricity efficiency by using energy-saving devices, avoiding peak usage, and investing in rooftop solar systems. These efforts will help reduce dependence on LNG and strengthen Thailand’s energy security sustainably.

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In this environment, Nimesh Chandan, Chief Investment Officer, Bajaj Finserv Asset Management Limited believes that while short-term headwinds may weigh on earnings and sentiment, the broader structural story of the Indian economy remains firmly intact.

In an interaction with Kshitij Anand of ETMarkets, Chandan highlights that current market corrections have brought valuations closer to fair levels, creating opportunities for long-term investors willing to look beyond near-term noise.

He identifies Financials, Industrials, and Healthcare as key sectors poised to benefit from India’s ongoing economic and credit cycle upturn, supported by improving earnings visibility and reasonable valuations.

He also advises investors to stay disciplined—either deploying lump sum capital if they can absorb volatility or adopting a staggered approach via SIPs or STPs—while maintaining a minimum three-year investment horizon. Edited Excerpts –

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Q) Thanks for taking the time out. We have entered FY27 on a volatile note amid geopolitical concerns, rising oil prices, possibility of rise in interest rates etc. Where do you see markets headed?
A) Unfortunately, we seem to have hit a speed bump in an otherwise strong growth year. Due to the geopolitical concerns and rising oil prices, there is a possibility that there could be some slowdown in economic growth and profit growth in the first half.
A small cut in earnings cannot be ruled out if this crisis continues for a bit longer. If this war in West Asia resolves quickly, as is widely expected right now with the ceasefire, there is a possibility that there is no significant earnings cut for FY27.
Our base remains that Indian economy, business cycle and the credit cycle are on an upturn. We have a positive stance on the earnings growth for FY27 and FY28. We are currently trading below intrinsic value for the Nifty 50 Index.

Q) What should investors do who are planning to put fresh money say Rs 10 lakh in markets? What should be the sectoral allocation?
A) Investors who can handle near-term volatility can put a lumpsum amount right now. Valuations are fair, but because of the geopolitical crisis, there could be near-term volatility. Other investors may stagger their investment through STP (Systematic Transfer Plan) or SIP (Systematic Investment Plan) as a route.

However, they should have at least three-year view when they are investing in the equity markets. From a sectoral perspective, we like Financials, Materials, Industrials, Healthcare and Consumer Discretionary. We believe large private banks as a category are available at good valuations.

We have been positive on pharma, specifically CRAMS (Contract Research & Manufacturing Services) and hospitals. We are equal-weighted on consumer discretionary as we are positive on long term prospects of the sector.

However, we are selective in this sector, evaluating companies on the potential impact of high energy and material prices on them. Within Industrials, we prefer Defence and Power.

Q) FIIs have remained net sellers in Indian equity markets withdrawing Rs 1.6 lakh cr. What will reverse the flows?
A) The India–US trade agreement earlier helped stem the FPI outflows that India had been witnessing over the past year. However, the recent escalation in geopolitical tensions in the Middle East has triggered a renewed phase of outflows.

Given India’s heavy dependence on imported crude oil, rising oil price uncertainties tend to weigh on investor sentiment in the near term.

That said, we view this as a transitory phase. As the geopolitical situation stabilizes and recovery gains traction, India’s relative valuation attractiveness compared to other emerging markets should support a revival in FPI inflows.

The key variables to monitor remain the evolution of the West Asia crisis and a moderation in crude oil prices.

Q) How do you see the currency moving in the next few months?
A) The INR has seen a sharp correction, first due to tariffs, FPI outflows and now crude spike and higher gold prices. We are the world’s largest importers of gold and most of our crude requirements are imported. These exert a lot of pressure on the INR.

If the geopolitical crisis abates and the crude cools off, we believe the pressure on the INR could ease at these levels. Falling INR is also an opportunity. A contrarian view we hold is that, this depreciation of currency will create huge export opportunity for Indian manufacturing sector.

Q) You have seen many market cycles and I am sure this one is no different. Things which one should avoid doing at current juncture?
A) Clearly, investors should avoid getting fearful in these equity markets. We did a very simple analysis at Bajaj Finserv AMC. We observed that the markets correct every time crude prices have crossed $100 per barrel.

The investors who have used that correction to invest have made healthy returns in almost all cases over the next three to five years.

Hence, the only thing the investors should not do right now is panic, be fearful, or be very myopic. This is a good opportunity from an equity investor’s perspective because of the corrections in valuation. Investors should focus on fundamentals, be patient, and stick to their asset allocation plan.

Q) How do you see Gold and Silver moving in FY27?
A) Gold and silver have already witnessed a strong rally, and from here, returns are likely to be more measured rather than sharply bullish. These assets should be viewed primarily as portfolio hedges rather than return-chasing opportunities.
Gold is expected to continue playing its role as a key diversifier, especially amid ongoing global uncertainties.

Silver, on the other hand, may remain relatively more volatile due to its higher linkage to global growth and industrial demand.

At this stage, investors should avoid chasing the rally in precious metals and instead use them strategically within portfolios for diversification rather than for aggressive return expectations.

Q) After the recent correction, do you see Indian markets trading at reasonable valuations vs developed or emerging markets?
A) From 2021 till Sept 2024, Indian markets outperformed other emerging markets by 70-80%. Since then, Indian has underperformed by more than 40%. This has brought valuations closer to fair value at an aggregate level.

Growth is recovering, interest rates are lower and hence in many pockets of the market, valuations are attractive.

From a global perspective, India continues to command a premium over both developed and emerging markets. This premium reflects strong growth visibility and better capital efficiency of corporate India.

Q) Which sectors are likely to hog the limelight in FY27 after the recent fall?
A) In the current environment, investors should avoid crowded trades and instead focus on sectors offering earnings visibility alongside reasonable valuations. Domestic cyclicals such as capital goods, manufacturing, and infrastructure are well-positioned to benefit from India’s ongoing capex cycle.

Financials, including banks and select NBFCs, should continue to see steady support from credit growth and overall economic momentum.

Within consumption, opportunities exist but are selective in nature, with a preference for segments where demand visibility remains strong. Information Technology may hog the limelight but due to worries on the US economy and developments in AI.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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LOS ANGELES — Los Angeles Lakers superstar Luka Doncic continues to battle a Grade 2 left hamstring strain that has sidelined him since early April, raising questions among fans about his mobility and potential return during the NBA playoffs.

Doncic suffered the injury on April 2 during a 139-96 loss to the Oklahoma City Thunder. He tweaked the hamstring earlier in the contest but attempted to play through it before it worsened on a deceleration move. An MRI the following day confirmed a partial tear of muscle fibers, a moderate injury that typically causes limping and pain with activity.

The Lakers ruled Doncic out for the remainder of the regular season, with his playoff status initially uncertain. A Grade 2 hamstring strain usually requires three to six weeks of recovery, depending on treatment and individual response. For a player of Doncic’s size and usage rate, caution remains paramount to avoid re-injury.

To accelerate healing, Doncic traveled to Europe for specialized medical treatment. His agent, Bill Duffy, confirmed the decision, noting consultations with Lakers doctors and Doncic’s personal medical team. Reports indicated the Slovenian star underwent regenerative therapies, including injections in Spain, aimed at promoting faster tissue repair. He was also spotted courtside at a Real Madrid EuroLeague game alongside Novak Djokovic and spent time with family in Slovenia.

As of mid-April, Doncic had returned to Los Angeles and rejoined the Lakers. Coach JJ Redick provided an upbeat update, describing the 27-year-old as “in good spirits” after speaking with him upon landing. Redick joked about not having seen him yet but expressed excitement for his presence around the team.

Recent reports offer mixed signals on his day-to-day mobility. Medical experts note that patients with a Grade 2 strain often limp when walking initially and experience occasional twinges. While no official confirmation exists that Doncic has resumed full running or basketball-specific movements, sources indicate he is aggressively attacking rehabilitation. He has been seen back at practice facilities, though the team has not detailed exact activities like walking without a limp or light jogging.

As of Tuesday, April 21, Doncic remains officially ruled out for the Lakers’ playoff games, including Game 2 against the Houston Rockets. He is listed as out indefinitely alongside Austin Reaves, who is dealing with his own Grade 2 oblique strain. The Lakers entered the postseason shorthanded, facing the Rockets in the first round after securing a playoff spot.

Optimism persists for a potential return. Some reports point to a target around May 1 — roughly four weeks post-injury — which could align with later stages of the first round or the second round if the Lakers advance. However, no firm timeline has been announced, and Redick has emphasized a measured approach. Rushing back risks turning a partial tear into a more severe issue that could sideline Doncic for months.

Doncic averaged 33.5 points, 7.7 rebounds and 8.3 assists per game this season while leading the NBA in scoring. His absence has forced the Lakers to rely on supporting players, including LeBron James, in a challenging series. The team has stressed patience, with medical staff monitoring progress closely through evaluations expected in the coming days.

Hamstring injuries pose unique challenges for high-volume players like Doncic, who relies on explosive changes of direction and deceleration. Recovery protocols typically progress from rest and protection to controlled mobility exercises, then strengthening, and finally sport-specific drills. Walking without a noticeable limp often marks an early milestone, followed by light running around the three-to-four-week mark for many athletes.

Public sightings and social media have fueled speculation. Videos and photos have circulated showing Doncic moving around the practice court, though details on gait or pain levels remain private. Team insiders describe him as focused and mentally prepared, but emphasize that full clearance depends on objective tests like strength symmetry and pain-free function.

The Lakers’ playoff hopes hinge partly on Doncic’s availability. Without him, the roster has shown resilience but lacks the offensive firepower that made them contenders. If he returns, even at limited minutes, his playmaking and scoring could shift series momentum. Yet experts warn against expectations of an immediate impact, noting that returning athletes often need time to regain rhythm and confidence.

Doncic’s history with lower-body issues adds context. He has dealt with various muscle strains and contusions in past seasons, though this Grade 2 hamstring marks a significant setback. The decision to seek treatment abroad reflects both the injury’s seriousness and the high stakes of postseason basketball.

As the series against Houston unfolds, daily updates from the Lakers’ training staff will be critical. Redick has reiterated that both Doncic and Reaves will not be re-evaluated until later in the week, keeping their status fluid but currently sidelined.

Fans have flooded social media with well-wishes and questions: Is he walking normally yet? Has he started light jogging? While concrete answers remain limited, the consensus from recent reporting is cautious progress. Doncic is mobile enough to travel and engage with the team, but full basketball activity — including unrestricted walking, running and cutting — appears weeks away at minimum.

The organization continues to prioritize long-term health over short-term gains. A premature return could jeopardize not only this postseason but future seasons for the franchise cornerstone, who was acquired in a major trade and has elevated the Lakers’ contention window.

Looking ahead, if the Lakers advance, Doncic could provide a boost in the conference semifinals. Medical projections for Grade 2 strains suggest that with advanced treatments like those he received, some athletes shave time off standard timelines. Still, conservative management remains the priority.

Doncic himself has stayed relatively quiet on social media regarding specifics, focusing instead on recovery and family time. His presence around the team, even if limited to the sidelines or practice observation, has boosted morale according to reports.

The NBA community watches closely. Analysts debate whether the Lakers can survive the first round without their leading scorer or if his potential mid-series return could spark a Cinderella run. For now, the focus stays on incremental gains: better mobility, reduced pain and gradual loading of the hamstring.

As Tuesday’s Game 2 approaches, the injury report lists only Doncic and Reaves as out, with no new setbacks reported. Kevin Durant of the Rockets is questionable with his own knee issue, adding another layer of intrigue to the matchup.

Lakers fans and NBA observers alike await the next update. While Doncic may not yet be sprinting or cutting at full speed, signs point to steady improvement in his overall condition. Whether he is walking without a limp remains unconfirmed publicly, but the trajectory suggests the star is making strides toward a possible playoff contribution.

The coming days and weeks will determine if specialized European treatment pays dividends. For a player who has transformed the Lakers’ offense, every step in recovery carries weight — literally and figuratively.

NEW YORK — Alphabet Inc. Class C shares slipped modestly in early Monday trading on April 20, 2026, falling $1.92, or 0.57%, to $337.48 as Wall Street braced for the tech giant’s first-quarter earnings report later this week and weighed the long-term costs of its aggressive artificial intelligence infrastructure buildout.

The parent company of Google closed Friday at $339.40 after posting a solid 1.99% gain for the session, but opened the new week with light selling pressure. The modest decline came against a backdrop of renewed geopolitical tensions in the Middle East that sent oil prices higher and contributed to a cautious tone across broader markets.

Alphabet (NASDAQ: GOOG) has delivered strong performance over the past year, with shares up more than 120% in the trailing 12 months, driven largely by momentum in Google Search, accelerating growth at Google Cloud and investor enthusiasm for its Gemini AI models. Yet concerns about elevated capital expenditures — projected as high as $185 billion for 2026 — have created periodic volatility as investors question the near-term impact on margins and free cash flow.

Analysts expect Alphabet to report first-quarter revenue of approximately $107 billion when it releases results after the market close on April 29, reflecting continued double-digit growth. Earnings per share are forecast around $2.61 to $2.76. Investors will pay particularly close attention to guidance on cloud performance, AI monetization progress and any updates to the full-year capital spending outlook.

“Alphabet continues to execute well on the top line, but the market is laser-focused on whether the massive AI-related investments will start pressuring profitability in a meaningful way,” said one technology sector analyst who declined to be named because he was not authorized to speak publicly. “The stock has pulled back from its February highs, creating what some see as an attractive entry point ahead of earnings.”

Google Cloud has been a standout performer, with recent quarters showing revenue acceleration fueled by demand for AI infrastructure and enterprise adoption of Gemini-powered tools. The segment’s growth has helped offset any softness in advertising amid economic uncertainty, though advertisers continue to navigate shifts in digital spending patterns.

The company’s heavy investment in data centers, custom AI chips known as TPUs, and networking equipment reflects CEO Sundar Pichai’s commitment to maintaining leadership in generative AI. Alphabet raised its 2026 capital expenditure guidance earlier this year to between $175 billion and $185 billion, far exceeding previous expectations and nearly double the amount spent in 2025. While executives have emphasized that these outlays are already driving increased usage and revenue, some investors worry about accelerated depreciation and higher energy costs squeezing operating margins.

Recent partnership announcements have bolstered confidence. Alphabet expanded collaborations with chipmakers, including discussions with Marvell Technology for new AI accelerators and continued work with Broadcom on TPUs. The company also secured long-term supply agreements and deepened ties with enterprises through Google Cloud, including deals involving energy infrastructure to power its expanding data center footprint.

Antitrust scrutiny remains a persistent overhang. Google faces ongoing appeals in U.S. cases where it was found to have illegally monopolized online search and advertising technology markets. Potential remedies could include changes to default search deals or data-sharing requirements, though the company has successfully fended off some related lawsuits from news publishers and others. In Europe, regulators continue to examine compliance with the Digital Markets Act, adding another layer of regulatory risk.

Despite these challenges, Alphabet’s core business demonstrates remarkable resilience. Google Search benefits from AI overviews that enhance user engagement, while YouTube and other advertising platforms show steady demand. The company’s “Other Bets” segment, which includes Waymo’s autonomous driving efforts, continues to incur losses but represents long-term optionality in emerging technologies.

Alphabet’s balance sheet remains fortress-like, with substantial cash reserves that provide flexibility for both investments and potential shareholder returns. The company pays a modest dividend and has engaged in share repurchases, though the scale of AI spending has tempered expectations for aggressive buybacks in the near term.

Monday’s trading volume remained relatively light as many investors positioned themselves ahead of the April 29 earnings release. Broader market sentiment was influenced by weekend developments in U.S.-Iran tensions, which raised energy costs and prompted some rotation out of growth stocks. Technology shares, including other mega-cap names, showed similar early softness.

Wall Street consensus remains largely bullish on Alphabet. Several firms, including TD Cowen and KeyBanc, have raised price targets in recent weeks, with some calling for $375 or higher. The average target suggests meaningful upside from current levels, assuming the company can demonstrate that its AI bets are translating into sustainable competitive advantages and revenue growth.

For retail investors, the current dip near $337 offers a reminder of Alphabet’s sensitivity to macro headlines and spending concerns, even as fundamentals appear solid. The stock trades well above its 200-day moving average but remains below the all-time highs reached earlier in 2026.

Looking beyond the immediate earnings horizon, analysts will scrutinize several metrics: cloud revenue growth rate, the contribution of AI products to search and advertising, progress on cost discipline, and any commentary on the competitive landscape against rivals like Microsoft, OpenAI and Amazon.

Pichai and Chief Financial Officer Ruth Porat are expected to highlight how AI investments are creating an “expansionary moment” for Search and unlocking new opportunities across the business. At the same time, they will likely address the timeline for these expenditures to generate returns and any potential impact on 2026 free cash flow.

The upcoming report arrives at a pivotal time for the broader AI trade. While enthusiasm for generative AI remains high, questions about ROI timelines and infrastructure costs have led to periodic pullbacks across the sector. Alphabet’s ability to articulate a clear path from heavy spending to profitable growth could reassure investors and support a post-earnings rebound.

In the longer term, Alphabet’s vast data advantage, global reach and engineering talent position it strongly in the AI era. Gemini models have shown rapid improvement, with integration across products helping to drive usage. Waymo continues to expand robotaxi services in select cities, offering another potential growth vector.

Regulatory risks, while real, have not derailed the stock’s upward trajectory over the past year. Shares have climbed substantially even after adverse court rulings, reflecting confidence that remedies may prove less severe than feared or that appeals could mitigate impacts.

As trading continued Monday morning, the modest 0.57% decline appeared more like routine consolidation than a fundamental shift in sentiment. With earnings just days away, many market participants were holding positions rather than making aggressive moves.

Alphabet Inc., with a market capitalization still among the world’s largest, continues to navigate the dual challenges of executing on its ambitious AI vision while managing regulatory and macroeconomic crosscurrents. The slight dip to $337.48 on April 20 served as a quiet pause before what could be a defining week for one of tech’s most influential companies.

Investors will watch closely not only for the headline numbers but for forward-looking commentary that either validates the heavy spending or raises fresh questions about its pace and returns. In a year defined by AI infrastructure wars, Alphabet’s next chapter may hinge on proving that its massive bets will pay off handsomely for shareholders.