Apart from strengthening the external balance, a decline in oil prices also leads to lower prices of petrol, diesel and LPG in the domestic market, which in turn eases inflation in the country.

India benefits from an eight-month low in oil prices at $75.8 a barrel, reducing its import bill and current account deficit. Strategic purchases of discounted Russian oil have saved India $7.9 billion in FY2022-23, strengthening the Rupee and easing inflation.

India is set to benefit from a recent drop in oil prices, which fell over $4 a barrel this week to a four-month low due to OPEC+ increasing production and higher US crude stockpiles.

During April this year, India imported more Russian oil but less from Iraq and Saudi Arabia than it did a month earlier, according to data compiled by trade tracking agencies Kpler and LSEG.

India, which is more than 85% dependent on overseas suppliers to meet its crude oil needs, imports oil from Saudi, Iraq and UAE as well as liquefied natural gas (LNG) from Qatar through the Strait of Hormuz.

Among the Sensex constituents, 22 stocks trended downwards, with Bharti Airtel, Nestle India, Sun Pharma, and IndusInd Bank being the prominent decliners. Conversely, Ultratech Cement, Tech Mahindra, Axis Bank, and Tata Steel managed to sustain positive momentum.