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Crude price rally to benefit Indian equities in the near term

There is a positive correlation between oil prices and Nifty50 over past 5 years

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Some analysts believe higher crude oil prices could significantly increase India’s energy import bill creating pressure on the current account balance

Krishna Kant Mumbai

4 min read Last Updated : Nov 26 2020 | 12:26 AM IST

The Indian equity markets corrected on Wednesday after hitting a lifetime high earlier in the day.

The benchmark Nifty50 index ended with losses of around 200 points, the biggest one-day fall in nearly a month. This sharp reversal was attributed to a rally in crude oil prices.

On Wednesday, Brent crude price hit an eight-month high of $48 to a barrel as traders bet on a faster-than-expected recovery in energy demand and a likely production cut by members of the Organization of Petroleum Exporting Countries (Opec) and Russia later this month.

Some analysts believe higher crude oil prices could significantly increase India’s energy

Topics : crude prices Indian equities

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