The stock market saw a ripple effect as oil prices climbed, impacting key sectors. The Russia-Ukraine war's escalation is a major factor. Read on to know more about the impact on Indian businesses.
Oil Price Hike
Oil prices saw an increase on Friday, with Brent Crude futures up nearly 0.3 percent to reach $67.85 per barrel. WTI Crude futures rose 0.33 percent, trading near $64 per barrel. This surge affected companies as oil is a critical raw material for paint, tyre, and OMC sectors in India. The rise in price increased input costs.
Market Reactions
Several Indian companies faced losses. Asian Paints shares dropped over 2 percent to trade at Rs 2,511. Indigo Paints saw a 1.5 percent decline, trading at Rs 1,122, while Berger Paints fell nearly 1 percent to Rs 525. BPCL shares dropped by more than 1.2 percent, and HPCL & IOC also saw drops. MRF, Apollo Tyres, JK Tyre, and Balkrishna Industries all experienced marginal losses.
Russia-Ukraine Conflict
The ongoing war between Russia and Ukraine continues to influence global markets. Vladimir Putin wants Ukraine to cede the Donbas region, drop NATO ambitions, and remain neutral. Recent events included a meeting between Putin and Donald Trump. Zelenskyy noted missile strikes and said Russia doesn't want to end the war and continues large strikes.
Trade & Tariffs
There's a lot happening on the trade front. Trump threatened a 50 percent tariff on Indian imports because of India's oil imports from Russia. Russian officials hope to keep supplying oil to India despite pressure from the United States. They also want trilateral talks with India and China to happen soon, which will be interesting.
Impact and Outlook
The rising oil prices impacted several Indian companies. The conflict in Ukraine and potential trade tensions continue to be major factors. With ongoing conflicts and discussions around trade, the future looks uncertain for many Indian businesses, especially those reliant on oil. It remains to be seen how these factors evolve.
