Crude Oil Price Influence on the Performance of Selected Stocks from Different Sectors – An Empirical Analysis

Abstract

In the growing economic scenario, crude oil prices influence on the growth of the nation. Most of the manufacturing industries performance is highly dependent on crude oil. Since manufacturing industry is highly dependent on crude oil, the increase in the oil price will impact the industry in an adverse manner. As the crude oil price is increasing day by day over the past years, the urge to understand the relationship between crude oil price and the economy has also increased. As there are fluctuations in the Indian economy, it leads to fluctuations in the Indian stock market as well. Because, the Indian stock market is highly volatile to the changing situations like inflation, Interest rates, Global events, politics, etc. Russia is well known for its crude oil. As the war between Russia and Ukraine starts, the impact  have been seen in the crude oil price. In this scenario, the impact of crude oil price and the stock market have greater relevance. By referring to the historical data, there is an inverse effect on the crude oil price and the stock market is visible. Tyres, lubricants, logistics, refineries, airlines, paints, etc. are highly dependent on the oil prices. Some industries are affected positively and others are affected negatively due to the fluctuations in the price. The research has been made from the point of the investor, and the details regarding the stock prices have been collected and analysed for this purpose.