MUMBAI, Jan. 5 -- Indian stock markets could benefit from a gradual decline in crude oil prices following US military action in oil-rich Venezuela over the weekend, though market participants remain divided on whether equities will react immediately when trading opens on Monday.

The US operation in the South American nation should drive crude oil lower over time which should be positive for India, said Ashish Gupta, chief investment officer of Axis Mutual Fund. He added that he did not expect a knee-jerk reaction from markets at opening on Monday.

"In the past two to three years, markets have not reacted significantly to geopolitical events whether in Europe or West Asia and I don't expect one after the Venezuela takeover either. Rather...