Brent crude above $114 after Houthi attacks on Saudi Arabia
Oil prices are staying stubbornly high, with Brent crude hovering above $114 a barrel thanks to ongoing tensions in the Middle East.
Recent Houthi attacks on Saudi Arabia have everyone worried about supply disruptions, and on Monday, prices had crossed $117 a barrel, still way up from earlier this year.
High crude risks Indian stock market
The US is pulling nonessential staff out of Saudi Arabia after those strikes, and President Trump isn't looking to talk things out with Iran right now. Experts warn this could mean even more trouble for global oil supplies.
For India, which imports most of its oil, these high prices could push up costs across the board and make things tough for businesses and the stock market.
As Anant Ladha, Founder of Invest Aaj For Kal, puts it, "crude is a big risk for the Indian stock market. India imports majority of crude and if crude prices are high, input cost of all the companies go for a toss and we see that it will directly impact the EPS growth rate and the earning profitability of the companies. Markets are slaves of earnings and if something is affecting earnings, it will affect equity markets as well. So crude is a bigger risk for Indian market as compared to interest rates, which are rising in the US. So we'll have to understand this right now. Crude is trading past 110 dollars per barrel currently, so till the time we don't see it going below 90 or 85 dollars per barrel, it will always be a headwind whenever the stock market will try to rise."