Story idea: Crude oil prices down and its impact on sectors like Paints, Aviation, Tyres Says Dr. V K Vijayakumar, Geojit Financial Services
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below Quote on Crude oil prices down and its impact on sectors like Paints, Aviation, Tyres By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The decline in crude prices has a two-dimensional positive impact for India. One, India’s trade and current account deficit will decline, boosting India’s macros. Also, this is positive for the rupee and, thereby, favourable for increased portfolio inflows into India.
From the micro perspective, segments like paints, adhesives, tyres and aviation will benefit from lower input costs. If the decline in crude prices sustain it will boost the bottom line of these companies using crude derivatives as inputs. Their stocks also should respond positively. But it is important to understand that the decline in crude prices is sustainable and is not a one off.
Above views are of the author and not of the website kindly read disclaimer
Tag News
Trend reversal in FPI investment from buying in last 3 months to selling in Sep
