New Delhi, April 15 -- The crude oil prices have remained above $90 per barrel for over one and a half months now as the conflict in the Middle East has impacted supply following the near-closure of the Strait of Hormuz. This has cast a pall of gloom on global markets, especially India, given the high dependence on crude imports. The Strait accounts for 20% of global and 40% of India's crude imports transit.

For India, the impact is direct: every $1 rise in crude increases the annual import bill by ~$2 billion, putting pressure on the trade balance. As a result, the Indian stock markets have moved from earnings-driven to oil-driven trading in the near term, with fluctuations in the crude dictating market trend.

Take today's rise, for in...