Indian Stocks Extend Losses as Crude Oil Jumps to $98

“With crude oil prices approaching the $100 per barrel amid concerns over further disruptions to global energy supplies, investor sentiment remained subdued as markets reassessed inflation risks and corporate margins,” said Vinod Nair, Head of Research at Geojit Investments Limited.

Foreign institutional investors sold ₹819.20 crore of Indian equities on Wednesday, exchange data showed, after a single session of buying. The selling pressure added to the domestic market's weakness even as most Asian peers rose. South Korea's KOSPI jumped 4.40%, while Japan's Nikkei 225, Shanghai's SSE Composite and Hong Kong's Hang Seng also ended higher. European markets traded lower, and U.S. markets closed in the red on Wednesday.

The oil move is a direct input cost shock for Indian refiners, airlines and fertilizer makers. A sustained rally past $100 would test the Reserve Bank of India's inflation forecasts and could force the central bank to hold rates higher for longer, several analysts said. The next major data point for the market is the U.S. core PCE print due July 31, which will shape dollar-rupee dynamics and imported inflation expectations.

For crude oil markets, the crude oil profile tracks supply risks and inventory levels. The broader commodities analysis section covers how energy prices feed through to other raw materials and equities.