Crude $90 Hits Indian Markets, FIIs Pull $12bn
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Macquarie expects Brent to stay in the $85–$90 range and gradually move toward $110 as Hormuz flows normalize only slowly.
- Ajit Mishra (Senior Vice President at Religare Broking) says crude is likely to stay $80–$85 on the downside and $95–$100 on the upside, with a gradual move toward $80 possible if supply improves and demand softens.
- Ambit highlights a physical market deficit of around 7 mbd and urges urgent strategic petroleum reserve restocking.
- Jefferies notes the Nifty’s 12‑month forward P/E has compressed to 17×, near its pre‑Covid average and 12% discount to the five‑year average.
- FIIs withdrew about Rs 1.2 lakh crore ($12 bn) from Indian equities in March, marking the worst monthly sell‑off in the market’s history.
- RBI intervention helped the rupee appreciate to 92.59 from 95.30, with USD/INR trading near 92.6.
- UBS downgraded HPCL, BPCL and IOCL, cutting target prices to Rs 175, Rs 365 and Rs 340 respectively.
Why it matters: Foreign institutional investors lose roughly $12 billion as they flee Indian equities, while domestic stocks gain a valuation edge with Nifty forward P/E at 17×, and the rupee steadies near 92.6 thanks to RBI action; however, oil‑linked firms such as HPCL, BPCL and IOCL see steep price drops, underscoring the uneven impact of high crude on the economy.
