An analyst says that if crude oil prices remain elevated, it could impact India’s current account deficit as well as fiscal deficit, as the country imports more than 80% of its total requirement. does.
An analyst says that if crude oil prices remain elevated, it could impact India’s current account deficit as well as fiscal deficit, as the country imports more than 80% of its total requirement. does.
Major stock indices tracking global cues fell sharply on Monday in the wake of the Russian war against Ukraine and a sharp rise in crude oil prices, sending shock waves around the world.
The S&P BSE Sensex closed 1,491.06 points or 2.74% lower at 52,842.75 on Monday.
The decline was led by banking and finance stocks and the top losers included IndusInd Bank (-7.63%), Axis Bank (-6.7%), Maruti Suzuki (-6.56%), Bajaj Finance (-6.37%) and Bajaj Finserv (- 6.27) were. ,
Sectoral indices were mixed, with Telecom, IT, Metal and Oil & Gas closing with gains while Auto, Bank and Capital Goods were the biggest losers.
NSE Nifty-50 index breaks psychological mark of 16,000; It fell 382.20 points, or 2.35%, to 15,863.15.
Vinod Nair, head of research, Geojit Financial, said: “Oil prices rose above $130 a barrel for the first time since July 2008 following the risk of US and European sanctions on Russia’s oil exports, which account for about 10% of global supply. ” Services.
“As a result, the domestic market, along with its global peers, witnessed heavy selling since the early hours. Other commodities like gold, aluminium, copper are also witnessing inflationary pressure, which will dent corporate profits in the coming quarters.
Pankaj Pandey, Head of Research, ICICIDirect said: “If crude oil prices remain elevated, it could impact India’s current account deficit as well as fiscal deficit as India accounts for 80% of its total requirement. imports more than
“On the equity market outlook, we believe volatility will remain in the near term until there is clarity on the termination of this attack. In the near future, metals, IT, pharma will be the major resilient sectors,” he said.