The widely held belief is that falling crude oil prices is good for India. That may hold true for the economy. But for the stock market? The chart below shows that lower crude oil prices need not necessarily trigger an upswing in stock prices.
Since 2005, Indian equities and global crude oil prices have more or less moved in the same direction. Indian shares did well even as crude prices were soaring to new highs, and declined when oil prices cooled off. Will the same pattern be repeated this time too? Only time will tell.