InvestorQ : Will oil prices be the key game changer to sustain a bull rally in Indian stocks?
manisha Kolvenkar made post

Will oil prices be the key game changer to sustain a bull rally in Indian stocks?

Answer
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1 year ago


Lastly, oil and commodities will continue to be the jokers in the pack. Firstly, there are too many important economies like Russia, Australia, Canada, Brazil, Middle East, Indonesia, Norway and others who are entirely dependent on buoyant oil and commodity prices. Weak oil prices will put pressure on these economies and their currencies. Weak oil and commodity prices are also a reflection of weak demand from China and that has its own negative repercussions. In a nutshell, the markets need some clear signals before they can break out above the current levels. It will have to be a mix of global macros and domestic policy initiatives. But above all, it will boil down to quarterly earnings. There will have to be a real turnaround in earnings of key industries like banking, auto, pharma, IT and metals for the markets to get into the next trajectory!