Spike in oil prices is a big risk and makes the foreign flows a lot more nervous: IV Subramaniam, Quantum AMC

In a chat with ET Now, IV Subramaniam, Director, Quantum AMC, talks about the spike in oil prices.

ET Now: How important and how disturbing could be the spike in oil?

IV Subramaniam: It will be quite disturbing if it continues and it is always difficult to predict where this would head to. Sometimes they tend to subside very quickly, and sometimes it can go on for a long time. The fact is that it is a big risk and that makes the foreign flows a lot more nervous. Moreover, India would also face problems of high oil prices, and therefore, the deficits will go up and the GDP may slowdown. In a period when there is a lot of money printing that is happening, people do not tend to worry about these things. But if it escalates a little further, people will start to worry and you may see serious declines in stock prices and many other asset prices as well.