Oil Price Surge to Weigh on Earnings, Bond Yields Expected to Remain High

Elevated oil prices may have a lasting impact on the broader earnings environment in India, according to Sandeep Bagla, CEO at TRUST Mutual Fund.

In an interview with Moneycontrol, Bagla said that investors should factor in the possibility of higher oil prices for longer. He noted that elevated bond yields are also expected to remain over the next few months due to persistent inflationary pressures.

The impact of oil price increases will vary across sectors, but some pockets of premium consumption and select consumption categories may continue to deliver healthy growth, Bagla said.