Mustard oil acts as a hair vitalizer to combat hair loss and baldness as well as treat dry and damaged hair. It prevents scalp infections by inhibiting fungal growth and keeping it hydrated. The best way is to apply a mixture of warm mustard, coconut, olive and almond oils and massage your hair for 15 to 20 minutes.assaging your scalp with mustard oil stimulates hair growth by increasing blood circulation in the scalp. It is packed with vitamins and minerals, particularly, a high amount of beta-carotene. This beta-carotene gets converted into vitamin A which is excellent for hair growth.