CRB Commodity Index Down 1.4% in April So Far

The CRB Commodity Index—which tracks 19 commodities, including crude oil, natural gas, industrial metals, agricultural goods, and precious metals—is down 1.4 percent so far this April, while Brent crude and the London Metal Exchange (LME) index, tracking industrial base metals, are down 13.7 percent and 9.1 percent, respectively.

- 

The Nifty 50, on the other hand, has corrected 4.2 percent on a month-to-date basis.

"Historically, commodity prices, corporate earnings, and equity markets tend to move in the same direction. A sharp correction in commodity prices points towards weaker revenue and profits for companies in upcoming quarters," said Dhananjay Sinha, co-head of research and equity strategy at Systematix Institutional Equity.

Sinha noted that lower crude oil prices might help temper wholesale inflation. However, the overall impact on retail inflation remains uncertain, as commodity corrections are often accompanied by a depreciation in the Indian rupee, which could push up input costs.