Mumbai, Aug. 18 -- Amid the Brent crude hovering near USD 90-91 per barrel due to US-Iran friction and Strait of Hormuz tanker disruptions, Devarsh Vakil, Head of Prime Research at HDFC Securities, assessed the immediate earnings impact, noting that 'Indian corporates have more or less discounted that these prices are not going to be a major concern for earnings'.

According to Vakil, non-linear earnings downgrades will occur 'unless crude oil goes beyond 100 dollars and remains steady at a much higher level around 100, 110, or 120 dollars'.

On macro disconnects, Vakil expects WPI inflation (around 9.8 per cent) to trend lower toward CPI levels (around 4.45 per cent), stating, "I don't see any limiting any scope for further divergence. I...