Crude oil prices have seen a big jump, and this can affect the Indian stock market.
Why Crude Oil Prices Are Increasing?
Tensions in Asia have shot up crude oil prices. After an attack on the Iranian embassy by Israel, the crude oil supply led to a disruption. As a result, the price of brand crude (the benchmark for all prices) went over 91 USD per barrel.
Impact On The Indian Stock Market
This can affect the Indian stock market, as India imports most of its crude oil—almost 80% of it. All prices have a direct relationship with affecting our economy. Haier oil prices mean expensive materials for businesses and people. Everyday goods can see a surge in prices. This can also strain our economy and weaken our dropping currency.
Some companies are heavily reliant on oil for their manufacturing needs; it can be for transportation or as a raw material. This company will have to bear a higher cost of crude oil, which can affect its profits a lot. Dropping profits can make an investor cautious about his investment in these sectors.
What’s Experts Have To Say
Experts believe that due to factors like elections, oil prices will not see an increase and won’t be able to affect the Indian stock market much. But if oil prices keep going up, then it could lead to a significant drop for some companies.
Experts have advised investors to keep an eye on all prices and see sectors that will be most affected by them. They also advised diversifying investments across various sectors. Staying up-to-date about global events that can affect the stock market is a must.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies and not TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions. TheStockMarketLive. We advise investors to check with a certified expert before making any investment decisions.
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