New Delhi, July 24 -- A sustained rally in oil prices is likely to weigh on Indian equities and the rupee, creating sharp sectoral divergences. However, it could benefit businesses linked to renewable energy and electric vehicles, according to market experts.

Brent crude surpassed the USD 100-per-barrel mark for the first time since May 26 on Friday amid intensifying geopolitical tensions. Iran's Houthi allies announced that they had attacked two Saudi oil tankers in the Red Sea.

Oil prices have surged more than 30 per cent this month as fighting in the Middle East sharply escalates. At the time of reporting, Brent crude was trading at around USD 99.85 per barrel, while crude oil was trading at around USD 91.27 per barrel. Indian equity...