Crude oil crossing 100 dollars a barrel and uncertainty around the United States elections are keeping Indian markets under pressure. Sensex and Nifty 50 showed some recovery in October after September’s sharp fall, but experts say global risks continue to weigh on investor sentiment.
Sensex gained between 770 and 1,200 points, or 1.1% to 1.7%, trading near 73,250 to 73,700. Nifty 50 rose 50 to 190 points, or 0.2% to 0.8%, hovering around 22,670 to 22,810. Despite this rebound, volatility remains high as foreign investors continue selling in IT and banking stocks, while domestic institutions and SIP inflows provide some support.
Analysts highlight that crude above 100 dollars raises India’s current account deficit, weakens the rupee, and fuels inflation. The upcoming US elections may influence Washington’s stance on Iran and the Strait of Hormuz, which could decide future oil supply trends. JM Financial notes that a settlement could ease supply concerns and bring crude closer to 80 dollars.
SMC Global Securities warns that high crude and election uncertainty form a double blow for sectors such as paints, aviation, chemicals, logistics, and automobiles, where margins are already tight. Rising input costs also limit the Reserve Bank’s scope for rate cuts, affecting corporate earnings.
Experts believe markets may remain under pressure until oil prices moderate and geopolitical clarity improves, which could revive investor confidence and support India’s macroeconomic outlook.