Are high oil prices always bad for market sentiment? No, suggests data

Even with oil prices ruling at $110 and $108/bbl in FY13 and FY14 respectively, the Nifty 50 managed to post a gain of 7.3 per cent and 18 per cent in each of these two fiscal years

High oil prices do not always dampen market sentiment in India, shows data. From a low of $62.78 on May 30, Brent crude oil prices have surged 23 per cent to a high of nearly $77 per barrel (bbl) amid geopolitical tensions. Despite this, the BSE Sen­sex, amid volatility, has ma­n­aged a gain of 0.6 per cent during this period, according to data. 

In the financial year 2012-13 (FY13) and FY14, with oil prices averaging $110/bbl and $108/bbl respectively, the Nifty 50 managed to post a gain of 7.3 per cent and 18 per cent. India’s economy grew at a