$100 Oil Shock Ahead? SEBI RA Mayank Singh Chandel Warns Of Sectoral Impact, Volatility For Indian Markets

On Friday, the Indian benchmark indices rallied 1.3%, driven by the temporary pause in U.S. military action with Iran, but renewed U.S. airstrikes over the weekend have unsettled the oil market. 

Brent crude futures are currently around $78 per barrel and may soon rise above $80, according to SEBI-registered analyst Mayank Singh Chandel.

He highlighted that if the Strait of Hormuz, which carries 40% of the world’s oil, faces disruption, it could push oil prices above $100: a scenario that poses risks for India, which imports over 90% of its crude oil and more than half of its LNG.

For Indian investors, higher oil prices could lead to higher inflation and potential interest rate hikes. Market volatility is likely to increase. Chandel observed that sectors such as auto, aviation, and FMCG may feel the heat. On the other hand, export-oriented companies may benefit, but only if the Indian Rupee remains stable. 

Chandel expects the Nifty index to swing between 24,500 and 25,200 in June. But he warned that further geopolitical escalation in the Middle East could wipe out recent market gains. All eyes remain on Iran’s next move as a crucial market trigger. 

He concluded that recent developments act as a reminder that global events can quickly impact Indian portfolios. Chandel adds that retail investors and traders must review oil-sensitive positions and remain alert to fast-changing international developments. 

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