Oil Price Surge May Hamper Indian Earnings Growth, Says TRUST Mutual Fund CEO

Elevated oil prices are expected to have a broader impact on the earnings environment, according to Sandeep Bagla, CEO of TRUST Mutual Fund.

Bagla notes that some pockets of premium consumption and select consumption categories may continue to deliver healthy growth, but the overall trend could become more challenging.

He attributes this expectation to tariffs, higher commodity prices, and sustained spending on AI infrastructure contributing to persistent inflationary pressures.

The bond yields are expected to remain elevated over the next few months, with the trajectory depending on how inflation and growth evolve.