How rising crude prices may affect

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 Global crude oil prices inched upward to hit their highest level


But why is crude so important for India? India is a net importer of crude oil and imports nearly 80 percent of its oil requirement. A meaningful rise in Brent prices will strain India’s fiscal/current account deficit, trigger inflation concerns for the Reserve Bank of India (RBI) and also dent hopes of a credit rating upgrade for India.

“India imports 3 million barrels per day

higher crude oil prices will increase raw material cost, working capital requirements, and operating costs for user industries such as lubricants, chemicals (including consumer staples), and paints.


Sectors that are likely to see increasing pressure thanks to a rise in crude oil prices are upstream oil companies. However, the same will be positive for export-oriented sectors such IT and pharma as rising in crude will put pressure on the currency as well

sectors like airlines, paints, tires, plastics, and select fast-moving consumer goods (FMCG) companies which use crude and its derivatives as their input being impacted the most.

Here is a list of top 10 stocks from different experts which are likely to be impacted the most from a rise in crude oil prices:

 

Gail India,- the impact will be mixed to positive

Asian Paints- impact will be mixed to positive paint sector which depended heavily on crude oil which forms part of the raw material cost will be negative

Interglobe Aviation SPICE JET- will be one stock that will be in focus. The rise in crude oil prices will be negative for the airliner as their fuel cost will increase

IOC, BPCL, HPCL - will remain under pressure as their margins will be less. OMC 

ONGC: The exploration and production sector will have a positive impact of higher oil prices as it will be an opportunity for them to churn out profits by pumping out more of crude oil. The rise in crude oil prices will have a positive impact on the stock

Petronet LNG - The companies engaged in oil exploration and production is likely to have a direct impact having a positive benefit.

 

Wise investing

Hemant pagi

Grow with learning 



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