The domestic stock market opened positively on Monday, buoyed by global indicators signaling a potential resolution to the ongoing conflict in West Asia.
Stock market expert Sunil Shah noted that India stands to gain significantly from a substantial drop in global crude oil prices. “The key reason is that with ongoing US-Iran peace talks, oil prices have moderated. If oil prices return to previous levels and remain stable in the near to midterm, India will be the primary beneficiary of these lower energy costs. This will put our economic growth back on a higher trajectory and alleviate concerns over corporate revenues and profits,” Shah told ANI.
Shah emphasized that the market’s positive opening reflects prevailing market expectations. “The market’s bullish start aligns with what we anticipated, given the indications over the weekend that the West Asian crisis could be resolved soon. We’ve seen encouraging statements from key figures in the US,” he added.
At the beginning of the week, global crude oil prices fell sharply by over 5%, dropping below $99 per barrel. This decline coincided with reports that Iran has tentatively agreed to reopen the Strait of Hormuz and address its stockpile of highly enriched uranium as part of an emerging agreement with the United States.
Shah pointed out that the decrease in crude prices has direct implications for India’s economy, which is heavily dependent on energy imports. “Crude oil prices serve as a reference point for our market. As these prices decrease, it is likely that the markets will respond positively, benefiting consumer spending and alleviating inflationary pressures, thus enabling our economy to return to growth rates that were forecasted prior to the Iran conflict,” Shah explained.
In terms of foreign investment, he noted that India has experienced recent outflows from foreign portfolio investors. “For some time now, the trend has leaned toward AI investments. As India lacks dedicated AI opportunities, capital has flowed to Southeast Asia and other regions where AI plays a significant role,” he stated, adding confidence that attractive valuations could bring this capital back.
Regarding recent increases in fuel prices, Shah confirmed that such hikes were anticipated. “The fuel price hike was expected; however, if international crude oil prices stabilize, no further increases should be necessary,” he said.
Published on May 25, 2026.
