Lower Oil Prices Needed to Bring Foreign Investors Back to Dalal Street, Says Expert

Foreign investors might start buying Indian stocks again only when crude oil prices go down. Ashutosh Tiwari shared this view. He works as the managing director and chief investment officer for public equities at Equirus Asset Management.

Market Hurdles

Stock prices have become more reasonable and company earnings are set to get better. Even so, high oil prices are pushing foreign investors to sell their shares. These high oil costs are the main roadblock stopping the market from growing much faster.

Market Re-Rating

Good stock values and strong earnings make the market look attractive. However, a major market jump and a big change in price-to-earnings levels will need steady money coming in from foreign investors.

Context

Crude oil is a major import for India, meaning higher global prices put pressure on the country's economy and corporate profits. Foreign Institutional Investors, often called FIIs, play a huge role in moving Indian stock market trends based on global economic conditions.