Crude became expensive due to the war between Russia and Ukraine. Although companies whose business was less dependent on crude, their stocks remained strong during market volatility.
Stocks in WarTime: Due to the war between Russia and Ukraine (Russia-Ukraine War), there was a fall in the stock markets around the world. Due to this war, there was a jump in the price of crude. Although companies whose business was less dependent on crude, their stocks remained strong during market volatility. Apart from this, investors’ interest in companies whose maximum revenue is dependent on exports also increased because of the weakness of the rupee, these companies got business support.
The rupee slipped to a record price of Rs 76.97 against a US dollar on March 7. It has weakened by 2.2 percent since Russia’s attack on Ukraine. Nifty50 has almost recovered its loss and had slipped up to 7 per cent but now it is only about 0.52 per cent weaker since February 24. Brent price has gained 3 per cent since February 24.
The rise in these stocks
- Pharma company Cipla included in the Nifty 100 index, 60 percent of its revenue comes from other countries and its shares have gained 15.4 percent since February 24.
- Cigarette maker ITC has gained 12.3 per cent. According to Bloomberg data, in FY21, ITC got 42.7 per cent of its revenue from cigarettes and 23.2 per cent from branded packaged food products.
It is important to know about these ‘Ratio’ before investing in stocks, it will help in choosing the right stock
- After the imposition of sanctions on Russia, there has been a fall in the supply, due to which the Indian metal stocks are showing a bullish trend. Since February 24, Jindal Steel and Power has gained 15.4 per cent, Tata Steel 11.1 per cent and JSW Steel by 6.6 per cent. In FY21, 50 per cent of Tata Steel’s revenue came from Europe, while 26.1 per cent of JSW Steel’s sales came from outside India. The drop in supply at this time is due to reduction in shipments by major exporting countries such as China and Japan. Both China and Japan are reducing exports to reduce their carbon footprint. China exports 6-12 million tonnes and Japan and Korea 30 million tonnes every year.
These stocks increased wealth even in a falling market, investors got returns up to 122%, check top performers
Auto stocks fall
Auto companies saw a fall due to the rise in oil prices. Due to expensive oil, the demand for two wheelers and cars in the country was affected. Shares of Maruti Suzuki and Eicher Motors fell 13-14 per cent since February 24. Apart from this, Hero MotoCorp and Tata Motors have also weakened 11 percent since February 24.
(Article: Yoosef KP)
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