Markets not fully pricing in rising crude oil price-led inflation: Analysts
In the past one month, the BSE Sensex and the NSE Nifty, shed over 6 per cent each, while crude oil prices soared to an eight-year high at almost $96 a barrel, up nearly 12 per cent.
At a time when the global markets are facing multiple headwinds such as the possibility of a faster-than-expected hike in rates by the global central banks, especially the US Federal Reserve (US Fed) and the ongoing geopolitical tussle between Russia and Ukraine, and the rising crude oil prices, the Indian markets, analysts say, are still not fully factoring in the rising crude oil prices and its impact on inflation as the government has kept the auto fuel prices unchanged in the backdrop of ongoing state elections. “The markets have not fully factored in the rise in crude oil prices.
