Despite the steady rise in oil prices, on Monday, the BSE Sensex rose 0.14%, ending at a record close of 33,731.19, having hit an intraday record earlier in the session. In 2017 so far, crude prices are up 9.98%. When crude oil prices rise, the government at times reduces excise duty on auto fuel to soften the impact on motorists, sacrificing some of its revenue. Higher oil prices would lead to rupee depreciation against the dollar, which in turn will impact FII flows. The Economic Survey 2017 presented in February had said that rising oil prices present a challenge to India’s growth, projecting the economy to grow in the range of 6.75-7.50% in 2017-18.

Source: Mint November 06, 2017 18:33 UTC