New Delhi, March 8 -- Even though it may be too early to draw firm conclusions, the Indian economy-otherwise in a sweet spot-is staring at the possibility of an inflation flare-up, a weakening rupee, a widening current account deficit, and growth losing steam due to the sharp jump in crude oil prices driven by the Middle East crisis.

Brent Crude prices have surged more than 30% since the combined attack of the US and Israel on Iran on February 28. On Friday, March 6, Brent Crude surged nearly 9% to 93.04 per barrel.

Indian stock market investors have reasons to worry.

India is the world's third-largest importer of crude oil. According to economists, it imports about 85-90% of its crude oil requirements, and every $1 increase in the per...