As crude spikes and markets slide, here are six burning questions on investors' minds

Indian equities endured a punishing, volatile start to the week. While the Sensex initially plummeted more than 2,400 points and Nifty 50 broke below the 23,800 support level on Monday, a late tug-of-war saw the Nifty fight back to reclaim the psychologically important 24,000 mark.This bruising session comes as the geopolitical landscape undergoes a dramatic shift.

With the West Asia conflict entering a volatile new phase, crude oil prices have surged past $100 a barrel.As the heat rises, Mint dives into six burning questions facing Dalal Street.The domestic economy is essentially tethered to the volatility of global markets as India relies on imports for nearly 80% of its crude oil. When oil prices climb, it sets off a domino effect across major economic indicators—stoking inflation, hiking interest rates, devaluing the rupee, and widening the trade gap.India's macroeconomic sensitivity to oil prices is substantial.

An Axis Securities report noted that every $1 increase in crude oil prices raises India’s annual import bill by roughly $1.5-2 billion. A $10 rise in oil prices could widen the current account deficit by about 0.35-0.5% of GDP, while a 10% increase in crude prices could raise inflation by nearly 20 basis points, the report noted.

These linkages make crude oil one of the most closely tracked variables among Indian investors.Brent crude’s 40% surge since the West Asia conflict began has rattled markets, forcing investors to confront an stark reality of expensive crude oil. However, Ajitabh Bharti, co-founder and executive director of CapitalXB, a fintech firm, remains sanguine.

“I don't see this as a structural risk for equities just yet. It feels more like a sharp cyclical shock, but the equity market’s