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Energy conservation plea meets oil shock as largecaps emerge as investors safest bet
Economy
Published on 14 May 2026
Every $10 oil rise adds $15–$16 billion to India’s CAD
Prime Minister Narendra Modi’s calls to curb energy use are being read by investors as a response to an unusually persistent oil shock. JPMorgan’s Sanjay Mookim says the crude price rise is hitting India’s external balance directly, with higher oil costs not yet fully passed to consumers, leaving government and companies to absorb much of the burden. The tougher effect, he warns, may surface in Q1 FY27 as demand tapers and capex momentum slows, shifting flows toward defensives.
- Oil shock directly worsens India’s external balance and CAD
- Each $10 oil price jump adds about $15–$16 billion annualised CAD
- Much of the oil cost has not been passed to consumers yet
- Q4 impact looked short-lived, but Q1 FY27 risks earnings pressure
- Demand deferral could hit consumption linked and capex sectors
- Largecaps may hold up better than the broader market and economy
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times