As Brent oil prices have fallen from the sharp highs of late 2018, many companies in india breathed a sigh of relief. However, the impact of high oil prices is disproportionate across Industries, and in the Indian stock market. Some sectors are disproportionately affected: this screener tracks stocks in these sectors. Plastics, Tyre and Textile companies for example, have significant crude oil-linked companies, and struggle with margins when crude oil prices soar. Similarly, Airlines, Auto and OMCs, as well as Transport and Logistics companies, benefit from lower oil prices, and airline companies see outright margin destruction during high oil price periods.
Lower oil prices are not always good news. Indian exporters exporting to gulf countries for example, are impacted negatively when oil prices fall, as these countries are hit with lower revenues. Oil manufacturing countries also invest in the Indian stock markets, and falling oil prices impact FII inflows.
