Crude Oil prices crossed 100$ which impact heavily on Indian Stock market: Sensex, Nifty at record low
vrushangshah93@gmail.com Crude Oil prices have crossed 100$ mark which badly impacted Indian Stock Market. Sensex, Nifty 50, Nifty Small cap, Nifty Midcap, Nifty Bank, Nifty IT all are in red. Investors have lost their money due to heavy selling pressure in Indian stock market. If the same situation will continue and prices of Crude oil will increase rapidly then Indian Stock market can make 52 weeks low.
Due to ongoing situation between United States, Israel and Iran, Crude Oil prices are rapidly increased. It has crossed 100$ price in recent times which is one of the main reasons of stock market is making a new low on a daily basis. At the same time, FIIs are selling heavily on stock market which also created a panic situation in Stock Market.
Crude Oil impacts directly on Inflation and it increases prices of goods which directly affect the pocket of consumer. Iran has stopped many ships on the ocean which have affected the supply in many countries.
Impact of Crude Oil Price on Indian Stock Market:
India is largely dependent upon the import of Crude oil from other Countries. Indian stock market heavily corrected if Crude oil price gets surged. Crude Oil has crossed 100$ price which reduce the value of Indian Rupees against Dollar. Indian rupee looks very low at this time against Dollar and due to that Indian Stock market faces a strong selling pressure. Let’s check out the impact of Crude oil:
– Inflation:
Inflation level increases as Fuel and Transport cost increases due to high price of Crude Oil and gas. If transportation cost increase, then it directly impacts on pricing of goods.
– Currency Value Down:
Indian rupees value goes down due to the price of Crude oil. Dollar value is constantly and gradually increasing and have crossed 92.
– Interest rates:
There are chances that Reserve Bank of India may not cut the interest rate or even it can increase the rate of interest which again not a good for Indian citizens.
Investors are constantly losing their money as their portfolio is in bright red color. There are chances that Crude Oil prices will increase from its current price which will create a panic situation for the Investor as Indian Stock Market is already in trouble.
Most of the blue cheap companies are at their record low price due to ongoing war situation. LPG Gas supply has been halted due to the current situation in the World which have created a big impact on hotel industries. Government of India has clarified that there are sufficient stocks of LPG and no need to create a panic situation as everything is under control.
Which Indian Stocks are largely impacted:
– Oil Marketing Companies:
Stocks like Indian oil corporation, Bharat Petroleum corporation are impacted directly as higher crude prices will impact on their profit margins directly and due to that it impacts on their profitability.
– Paint Stocks:
Asian Paints, Indigo Paints and stocks which need Oil as their raw material have directly impacted and it will affect their profitability in the fourth quarter.
Earlier Gold and Silver prices rapidly increased and then suddenly it went down and after that Crude Oil prices rapidly increased. Indian Stock market is heavily impacted due to prices of Silver, Gold, Crude Oil and Dollar value. Even FIIs are constantly selling which also impacted heavily on Indian stock market.
Most of the sectors are in red except renewable energy sector. Shares like NTPC, NTPC Green Energy, Adani Power, Coal India and shares relating to this energy sector have increased but other than that all the sectors are in red color only.
Current Situation is also not looking good and Crude oil prices can also increase from the current price which can impact heavily on Indian Stock market. India is totally dependent upon foreign Countries for Crude oil which is a negative point for India as this kind of situation can lose the trust of Investors. Indian stock market has given a negative return and if same situation will continue then the loss can be heavier.
Investors are panic due to the poor performance of Indian stock market, and they are confused with their portfolio.
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