Crude oil casts a shadow on Dalal Street

In the past, every major market correction has been preceded by higher crude oil prices and vice versa

The recent weakness on Dalal Street has raised fears of crude oil’s adverse impact on Indian equities. The benchmark Nifty 50 index is down 3.2 per cent from the lifetime high it hit on November 3. In the same period, Brent crude oil is up 1.9 per cent and hit a new 52-week high. This also suggests the Indian markets are now struggling to hit fresh highs as oil prices inch up. In stock market parlance, every rally is being sold into by long-term investors, creating fear of a major market correction if oil prices rise any further or if