Impact of crude oil and US dollars price on the Indian stock exchange
A K Goel1, Zh Tutkusheva2
COMPUTER MODELLING & NEW TECHNOLOGIES 2016 20(2) 15-22
1Integral University, Department of Business Management, Lucknow, India
2Karaganda Economic University Kazpotrebsoyuz, Department of Economics & Management, Karaganda, Kazakhstan
The speed and magnitude of the oil price decline has the potential to trigger financial strains, which could reduce the global benefits of lower oil prices, although the effects have so far been contained. Countries and companies dependent on oil revenues have already been significantly re-priced, especially those with existing vulnerabilities, but the impact may not yet have been fully felt. In particular, a number of energy firms accumulated sizable debt during the period of high oil prices, and some banking systems saw a marked increase in loan exposures to the energy sector. Moreover, the redistribution of wealth among investors with varying saving and portfolio preferences could have market repercussions, and those effects will also take time to play out. For those concerned about market infrastructure, there does not appear to be evidence of dislocations in the oil markets so far. This article is an attempt to analyse the various factors which are responsible for effecting Indian Stock market.