Crude is the biggest tailwind for Indian equity market, according to Saurabh Mukherjea, founder of Marcellus Investment Managers.
US oil prices rose on Wednesday to claw back part of their more than 5 percent losses from the previous session, with worries about oversupply and a slowing global economy keeping markets under pressure.
US crude oil had climbed 37 cents, or 0.8 percent, to $46.24 per barrel by 0122 GMT (6.52 am IST), after plunging 7.3 percent the day before in a session when it touched its lowest since August last year at $45.79.
Global benchmark Brent was up 0.85 percent, or 49 cents, at $56.75 per barrel. It dropped 5.62 percent on Tuesday, at one point marking a 14-month low of $56.16 a barrel.
“Crude swing from $85 per barrel to $57 per barrel, this is Brent – it has made life easier. More than what the new Reserve Bank of India (RBI) governor does, what will determine our fate is can the money market ease out,” said Mukherjea.
On the appointment of Shaktikanta Das as RBI governor, he said, “Even with Urjit Patel there, the RBI was pumping a lot of liquidity in and clearly Shaktikanta Das has also promised the same." "I think banks are your best play at the moment on an incipient capex recovery," he said.