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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.

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