Indian equity markets are expected to witness a cautious start after Brent crude oil climbed sharply above the US$90 per barrel mark. The rally in crude follows fresh U.S. military strikes on Iranian targets and escalating tensions around the Strait of Hormuz, raising concerns over global oil supplies. Since India imports nearly 85% of its crude oil requirement, sustained high oil prices could put pressure on inflation, corporate margins and the country’s trade balance.
Market participants are likely to monitor crude oil movements, foreign institutional investor activity and quarterly earnings for further direction. Banking, auto and aviation stocks may remain volatile as investors assess the impact of higher energy costs on company profitability.
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