Effect of Crude Price Oil Prices on different Sectors
Shares of oil marketing companies, local airlines, tyre firms and paint companies have some co relation to crude prices.
If crude prices rises then below stocks has tendency to fall downside.
If crude prices falls then below stocks has tendency to rise upside.
CRUDE Vs PAINT COMPANIES
For paint companies (like Asian paints, Berger paints) the fall in crude oil prices is beneficial While rise in crude oil prices is NOT beneficial as crude oil derivatives is used as inputs for paints.
CRUDE VS TYRE COMPANIES
There is a healthy correlation between crude price and rubber prices as they move parallel with each other. CEAT and MRF are major gainer from fall in crude prices while they are major losers from rise in crude prices.
CRUDE VS CEMENT COMPANIES
Most of the cement companies have enhanced their fuel mix in favour of petcoke and currently using over 80 percent of petcoke as fuel. Petcoke prices move in tandem with crude prices. Hence, a fall in crude price is beneficial for all cement companies while rise in crude prices is not good for cement companies.
UltraTech Cement, Shree Cement, ACC, JK Cement, Mangalam Cement.
CRUDE VS OMC
Lower crude oil prices are beneficial to Indian Oil marketing companies as we import over 80 percent of our crude oil requirement. More specifically, lower crude oil prices help the Oil Marketing Companies (OMCs) as they don’t have to worry about the loss on subdidised products like LPG and kerosene.
Rise in crude prices are not good for OMC.
HPCL, BPCL, IOC.
Global Currency YEN Vs MARUTI prices.
A strong YEN has a negative effect on MARUTI.
A weaker yen has a positive effect on MARUTI stock price.
Disclaimer – The above is just our personal view based on our research. We are not Sebi Registered Advisers. We are not liable for any profits/losses. Its always advisable to do your own research before trading/investing or consult your financial adviser.