And you thought falling crude was good for Indian equities?

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.

Riken Mehta


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s