The Impact of Crude Oil Prices on Indian Stock Markets
Hello everyone let us understand impact of crude oil on Indian Markets The Impact of Crude Oil Prices on Indian Stock Markets understand the impact of oil prices. A rise or fall in crude oil prices affects the prices of various commodities. An impact on the prices of commodities affects companies. The recent decline in the crude oil prices has helped improve investor sentiments in Indian markets. Here are a few points that explain the impact of crude oil prices on the Indian stock markets: Current Account Deficit (CAD) and Rupee depreciation: Every U$10/bbl increase in oil price leads to a 0.55% or 55 bps increase in the current account deficit. Crude oil is one of the most important commodities in recent time. India is one of the largest importers of oil in the world. It imports more than three-fourths of its oil needs. Therefore, a fall in the price of crude oil will have a positive impact on India’s current account deficit situation. Lower CAD will mean reduced stress on foreign cu