Monday Mayhem in Markets! Global markets are rattled as the West Asia war escalates and oil prices explode. Brent crude surges 18%, triggering a massive risk-off sentiment across global equities, with markets sliding 2–8%. ⚠️ Fears of a Strait of Hormuz closure are choking global sentiment, while GIFT Nifty signals a ~700-point gap-down start for Indian markets. What does this mean for investors? How deep could the impact be? ?️ Catch Surabhi Upadhyay of Moneycontrol in conversation with market experts as they decode the global market turmoil, oil shock, and what lies ahead for Nifty and global equities.
The recovery in Indian OMCs share prices tracked the continued softness in crude. Brent crude settled 1.4 percent lower on Tuesday, and saw only mild, technical gains on Wednesday.
As Israel launches major strikes on Iran, global markets react sharply. Crude oil has soared 13%, raising fears of a potential shutdown of the Strait of Hormuz. Experts now warn that oil could spike to $120 per barrel. Gold prices are also climbing amid a global safe-haven rush.
As the tyre industry uses crude oil derivatives for manufacturing synthetic rubber, tyre stocks will remain in focus as a rise in crude price will hit their margins.
The current market texture is weak but oversold, according to analysts, who are advising investors to avoid both panic selling or fresh buying at the moment.
Motilal Oswal expects a negative stock price reaction for OMCs in the near term, given the retail price cut and recent elevated Brent prices
Crude rebounded from losses on Thursday triggered by hefty increases in U.S. gasoline and distillate stocks, and both benchmarks ended the first week of the year higher.
Oil prices in the near term are overbought on the charts but the momentum is on the higher side, say market experts. They believe that if China's demand comes back strong then the crude could spike to $100, but not stay there as India and the US are headed to elections soon