Crude oil prices hit $80 per barrel, raise alarm bells on Dalal Street

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A steady rise in crude oil prices, which hit $80 a barrel on Thursday, has raised alarm bells on Dalal Street and among equity investors. In the past, the stock markets and equity valuations have always peaked before oil prices peaked.For example, in the previous bull-run, Sensex valuation peaked at price-to-earnings (P/E) multiple of 28x in the December 2007 quarter, nearly six months prior to crude oil prices hitting a record high of $140 a barrel in June 2008. Similarly, in the post-Lehman crisis rally, the Sensex P/E multiple topped nearly six months prior to the high in crude oil …
Source: Business Standard