Lower crude oil prices also boosted the prospects of a cut in interest rates amid hope that Prime Minister Narendra Modi will introduce structural reforms to help Asia’s third-largest economy unlock its growth potential. Global markets were largely weak as trade war fears between the US and China heightened. In the past five sessions, Brent crude oil prices have fallen over 13%, declining 3% on Monday. A surge in crude oil prices stokes inflation as India is among the countries most vulnerable to rising energy costs, importing more than 80% of its oil requirements. This too offers room to emerging markets central banks, including India," it said in a note on 3 June.Analysts are concerned that the market rally does not have fundamental support.

Source: Mint June 03, 2019 17:48 UTC