The entire energy basket is on fire in the Russia-Ukraine war. There is tremendous movement in metals and commodities. This crisis is an opportunity for some companies and has come as a disaster for some companies. Exploration shares have risen as crude oil crosses 112 DOLLER per barrel. ONGC and HOEC have run away by more than 3%. SELAN EXPLORATION jumped 8%. The Nifty Energy Index gained 4 per cent this week. However, the rise in crude has put pressure on the paint stocks.
CNBC-Awaaz’s Yatin Mota told which companies the Russia-Ukraine crisis is an opportunity and for whom a disaster
Yatin pointed out that Russia is a huge supplier of oil and other commodities. Apart from this, Ukraine also exports many commodities to other countries. Therefore, due to their crisis, the supply of these commodities is being directly affected. It is being seen that the oil boils due to this disaster.
Positive for ONGC, OIL
At this time, this crisis seems to be proving positive for ONGC, OIL. Both these companies do business in both gas and oil. Therefore, they can be seen to benefit on both fronts. European gas prices have risen 22% since the war between Russia and Ukraine. There is a spurt in it due to the fear of reducing its global supply.
Negative for HPCL, BPCL, IGL, Guj Gas
Yatin further said that this crisis could have a negative impact on the oil marketing companies. Due to the rise in the prices of petrol and gas, there is a negative impact on the business of oil marketing companies like HPCL, BPCL. On the other hand, if the supply of gas is affected, its price will increase. , IGL is negative for Guj Gas as rising gas prices have impacted margins.
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Positive for Coal India
This crisis will prove to be positive for Coal India. Coal prices in China are rising due to supply constraints and threats of sanctions. Due to which coal prices have reached an 8-month high at present. That’s why its shares have also shown a rise today.
Positive for NALCO, Hindalco, Vedanta
Yatin told Mota that the Ukrainian crisis has pushed aluminum prices to all-time highs. China has made preparations to deal with the commodity crisis. China has instructed its states to buy the commodity.
This crisis is proving to be negative for the auto sector as there will be a boom in petrol and diesel due to expensive crude.
Negative for the leading pharma company Dr Reddy’s
Yatin said that this pharma company gets a lot of business from Russia. This seems to be proving negative for Dr Reddy’s. 8% of the company’s total sales are in exports to Russia.
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