The tide turns
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Indian stocks surged 10% last week after a long period of underperformance.
- ✓Market experts say oil prices must fall to $70-80 per barrel to sustain this rally.
- ✓Lower energy costs would help control inflation and boost the rupee.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Financial Express
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
For the huge market rally to sustain, oil prices must come down to levels of $70-80/bbl
What will sustain their interest and keep the rally going? Much depends on oil prices. A decline to $75-80/barrel would leave India's macroeconomic fundamentals considerably less vulnerable. India has weathered the energy shock remarkably well, and improved oil supplies would strengthen the momentum. Smaller oil and fertiliser import bills would ease pressure on inflation, the trade deficit, and, importantly, the currency. Lower oil prices should also have a salutary effect on other commodity prices, allowing inflation to moderate meaningfully and reducing the need for interest rate increases. Optimism on this front probably propelled the rupee past the 94 mark against the dollar on Friday.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Financial Express
Read the full, original unfiltered story directly on the publisher's portal.
This brief is for information only and is not investment advice. ArthNow is not a SEBI-registered investment adviser and does not publish buy or sell recommendations. Original reporting is credited to the publisher named above. Read our editorial policy or report an error.