Indian Equities Slide as Crude Price Spike Rattles Investors

The sell-off reflects deepening anxiety over global inflation and the potential for a sustained economic slowdown. IT stocks bore the brunt of the market’s reaction, shedding 1.1% in early trading. G Chokkalingam, founder of Equinomic Research, warned that domestic equities will likely remain caught in a volatile, downward trend until the Mideast conflict reaches a meaningful resolution.

Despite these pressures, physical supply chains remain active. India’s intake of Middle Eastern crude climbed to 2.8 million barrels per day in September, with refiners increasingly reliant on spot cargoes flowing through the Strait of Hormuz. Conversely, imports from Russia—previously the country's dominant supplier—dipped 14% to 1.8 million barrels per day. With little sign of diplomatic progress between the U.S. and Iran, the shadow cast by energy instability is expected to persist well into the coming year.