India's stock market today is influenced by many global and national factors, and crude oil prices are among the most important. Since India is the world's third-largest buyer of crude oil, its economy is affected by any changes in the global oil market. These price movements across sectors affect stock indices, investor mood, and even trends in demat account openings.
In 2025, with Brent crude oil prices falling to a three-year low of nearly $65 per barrel in March and volatility, the Indian share market today has recorded mixed reactions across sectors.
This blog discusses how movements in the price of crude oil influence the Indian share market today, their wider economic consequences, and the booming Demat account opening as investors find their way through these changes.
Connection Between the Share Market Today and Crude Oil Prices
India needs a large amount of crude oil for transportation, manufacturing and petroleum products. Because it imports 89% of its crude oil, it is very vulnerable to changes in international oil prices. Between FY17 and FY24, India's crude oil production decreased by 3% every year, reaching 29.4 million tonnes, while its imports increased from 86% to 89%.
As a result, the prices of crude oil can directly affect the expenses of most companies listed on the Indian stock market today. Prices for oil globally in 2025 have been falling due to worries about supply exceeding demand.
A fall in crude oil prices may have different results in India, meeting challenges for some industries and leading investors to adjust their strategies in the share market.
Effect on Major Sectors in the Share Market
Companies such as Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) experience a direct blow with a change in the movement of crude oil prices. When oil prices decreased in April 2025, the prices went below $60 per barrel, such these firms had lower input prices.
In the share market today, OMC shares have been volatile. IOC's stock price went up by 2.87% to ₹139.65 on April 30, 2025, showing optimism in spite of reduced crude prices.
Investors with shares in such companies through a demat account can enjoy the chances of using short-term price fluctuations. Still, long-run profitability is in doubt because of regulatory risks.
Aviation and Transportation
The majority of working costs in aviation and transport come from fuel prices. A steep drop in crude oil's price has profited airlines such as Interglobe Aviation (IndiGo) and SpiceJet. Since Brent crude has dropped to $65 per barrel, it has become easier for airlines to make a profit.
These savings enable airlines to keep ticket prices competitive, increasing demand and steadying their share prices in the share market today.
Lower fuel prices, for instance, will help improve the margins of airlines, making their shares attractive for investors applying for a demat account opening to step into the market. This indicates that investors are placing their bets on sectors such as aviation to gain from lowered operational expenses.
Manufacturing and Paint Industry
Manufacturing industries such as paints, tyres, and chemicals heavily depend upon petroleum products as raw materials. Asian Paints, Berger Paints, and Nerolac Paints are among the companies that incur higher expenses when crude oil prices go up.
The recent reduction to $65 per barrel has eased some pressure. Reduced input costs can be helpful in improving profit margins, and therefore, these stocks become attractive in the share market today.
This cost-benefit has attracted investment interest, leading to a rise in demat account opening as retail investors move to take advantage. The Stock Market Today is a testament to this hope, with manufacturing stocks proving to be resilient in the face of overall market volatility.
Surge in Demat Account Opening Due to Market Dynamics
The crude oil price volatility and its effects on the share market today have triggered a huge increase in demat account openings. In September 2024, India's total demat accounts stood at 175 million, with 4.4 million accounts being added for the month, representing an average monthly addition of 4 million accounts in FY25.
This rush is partially driven by retail investors looking to take advantage of opportunities across segments impacted by movements in crude oil prices. The ease of demat account opening via online platforms reduced hurdles for retail investors to invest in shares, which are directly affected by crude oil prices.
Conclusion
The share market in India today is inseparably related to changing crude oil prices, especially in the OMC, aviation, and manufacturing sectors. The rise in demat account openings, 175 million demat accounts as of September 2024, is an indication of increased retail investor desire to tap these opportunities.
With crude oil prices fluctuating, investors need to keep themselves updated and opt for strategies to manoeuvre the Stock Market Today. It will help them take advantage of the ease of opening a demat account to create strong portfolios.
FAQs
1. What influence do crude oil prices have on the share market today in India?
Crude oil prices impact industries such as OMCs, aviation, and manufacturing by altering input prices and profitability. Falling prices are profitable for aviation and manufacturing stocks but could shrink OMC margins.
2. Why are more investors preferring demat account opening in 2025?
The rise in demat account opening is driven by retail investors looking for possibilities in sectors such as aviation and manufacturing, which profit from declining crude oil prices.
3. Which segments of the share market today stand to earn the most from the falling crude oil prices?
Sectors such as manufacturing (e.g., Asian Paints) and aviation (e.g., IndiGo) gain from the decline in fuel and raw material costs, enhancing profitability and share performance.
4. How does crude oil price volatility affect demat account opening trends?
Price volatility in crude oil offers investment opportunities. It encourages retail investors to open demat accounts for trading in affected shares, with 4.4 million new accounts opened in September 2024 alone.
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