India, March 30 -- Global brokerage HSBC has observed that the recent volatility in Indian equities mirrors patterns seen during past oil price shocks. Historically, a sharp rise in crude prices tends to negatively affect corporate earnings and market performance. Specifically, a 20% increase in crude oil prices typically reduces corporate earnings by around 1.5 percentage points, while a 10% supply-driven spike in oil can drag equity indices down by approximately 1.3%.

The sectors most affected by such oil price shocks include consumer discretionary, IT services, and financials. The pressure on markets is further intensified by currency weakness, with HSBC noting that every 1% fall in the Indian rupee adds roughly an additional 1% dra...