Moreover, analysts expect elevated crude to remain a persistent drag on market sentiment. “As long as the Strait of Hormuz stays disrupted, crude oil will remain a headwind,” said Rajesh Singla, CEO and fund manager , Alpha AMC. “India imports most of its crude, so higher prices hit the trade deficit, the rupee and inflation together, and limit the RBI’s room to support growth,” he noted. However, the drag is conditional and not permanent, Singla said. “If supply routes reopen, the oil premium can unwind quickly and markets can react sharply. Until then, every crude spike will show up in equities.”
